GOPAL,ALIGARH vs. PRINCIPAL COMMISSIONER OF INCOME TAX-1, AGRA, AGRA

None appeared on behalf of the assessee.

Heard and perused the material available on record. In this case, the assessment was completed u/s 143(3) r.w.s 144B of the Act vide order dated 27.12.2022. The assessee is an individual and engaged in the wholesale trading of M.S. Iron Scrap. It is seen that the notice u/s 133(6) were issued to the suppliers from whom the assessee purchased the scrap. It is further seen that the notice u/s 133(6) were issued in case of 36 suppliers through verification unit and it was reported that only 10 notices were served and replies were filed. The AO after considering the reply filed by 10 parties and going through the submissions made by the assessee, accepted the purchases made and completed the assessment by making disallowance of Rs.1,19,889/- on account of GST penalty. It is further seen that during the course of assessment proceedings, the assessee has field confirmation of 32 suppliers. The Ld. PCIT in its order u/s 263 observed that the AO while completing the assessment has failed to appreciate the fact that all the suppliers had not complied to the notices issued u/s 133(6) of the Act despite of non-services of notices. Ld. PCIT further observed that the AO had not taken any further action and simply accepted the confirmation filed by the assessee. Ld. PCIT observed that these confirmations were identical and they appeared to be prepared in the same handwriting by one person. These facts were not examined by the Assessing Officer, therefore, the Ld. CIT(A) after making verifications of the facts reaches to the