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Issues Involved:
1. Validity of the CIT(A)'s order setting aside the original assessment. 2. Justification of additions made by the Assessing Officer in the fresh assessment. 3. Compliance with CIT(A)'s directions in the fresh assessment. 4. Evaluation of evidence provided by the assessee. 5. Assessment of agricultural income and related expenses. 6. Consistency in the treatment of transactions between the assessee and Madhumilan Syntex Ltd. Issue-wise Detailed Analysis: 1. Validity of the CIT(A)'s order setting aside the original assessment: The CIT(A) set aside the original assessment and directed the Assessing Officer to reframe the assessment after conducting specific enquiries. The assessee challenged this, arguing that the CIT(A) should have deleted the additions instead of directing further enquiries. The Tribunal noted that the CIT(A) had plenary powers to direct the Assessing Officer to conduct further enquiries and that this order was not contested by the Department, making it final. 2. Justification of additions made by the Assessing Officer in the fresh assessment: The Assessing Officer added the declared agricultural income as income from undisclosed sources and added agricultural expenses as unexplained expenditure under Section 69C. The Tribunal found that the Assessing Officer did not comply with the CIT(A)'s directions for further enquiries and instead relied on findings from previous years without conducting independent verification for the current year. The Tribunal concluded that there was no justification for these additions. 3. Compliance with CIT(A)'s directions in the fresh assessment: The Tribunal observed that the Assessing Officer did not follow the CIT(A)'s directions, which included verifying the existence of trucks used for transportation, the source of expenditure, and the actual receipt of goods by Madhumilan Syntex Ltd. The Tribunal found that the Assessing Officer failed to conduct these enquiries and instead issued a notice under Section 142(1) after a delay of two years, which was insufficient to comply with the directions. 4. Evaluation of evidence provided by the assessee: The Tribunal noted that the assessee had furnished substantial evidence, including lease documents, sale bills, transport receipts, certificates from village officials, and cash flow statements. The Assessing Officer dismissed this evidence without proper verification. The Tribunal emphasized that the burden was on the Assessing Officer to disprove the evidence provided by the assessee, which he failed to do. 5. Assessment of agricultural income and related expenses: The Tribunal found that the assessee had provided sufficient evidence to support the claim of agricultural income and related expenses. The discrepancies noted by the Assessing Officer, such as the difference in sales figures and the storage of crops, were adequately explained by the assessee. The Tribunal concluded that the evidence provided by the assessee was credible and that the additions made by the Assessing Officer were unwarranted. 6. Consistency in the treatment of transactions between the assessee and Madhumilan Syntex Ltd.: The Tribunal observed that the Assessing Officer did not dispute the purchases of soyabean by Madhumilan Syntex Ltd. in the company's assessment, which was inconsistent with his stance in the assessee's case. This inconsistency further weakened the justification for the additions made by the Assessing Officer in the assessee's assessment. Conclusion: The Tribunal allowed the appeals against the orders of the CIT(A) confirming the additions made in the fresh assessments and dismissed the appeals against the orders of the CIT(A) setting aside the original assessments as infructuous. The Tribunal directed the deletion of the additions made by the Assessing Officer, concluding that the assessee had adequately proven the agricultural income and related expenses and that the Assessing Officer had failed to comply with the CIT(A)'s directions and to disprove the evidence provided by the assessee.
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