Haroon Shaikh Vs ITO (ITAT Pune)
This consolidated order from the Income Tax Appellate Tribunal (ITAT), Pune, addresses appeals filed by the assessee, Haroon Shaikh, against separate orders of the National Faceless Appeal Centre (NFAC), Delhi, for Assessment Years (AY) 2012-13 and 2013-14. The appeals arose from respective Assessment Orders passed under sections 143(3) read with 147 of the Income-tax Act, 1961. Since the issues raised are common, the appeals were disposed of together.
AY 2012-13: Lead Case Facts and Issue
The assessee, an individual, is in the business of transport of Live birds/Poultry products. The case was reopened based on information that the assessee had purchased poultry products from Venky’s group amounting to Rs. 2,64,76,630/-.
The assessee claimed to own two poultry bird caged vehicles used to transport live birds/poultry products on a per kg commission basis for buyers/retailers in Dhule District. The assessee’s procedure involved purchasing the livestock on behalf of these buyers from Venkateshwara Hatcheries Pvt. Ltd. (VHPL) outlets and safely transporting them to the ultimate buyers. The assessee claimed the net profit from this activity, which is in the nature of commission, has been regularly offered to tax in the past and future, ranging from 1.20% to 1.65%.
