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2023 (4) TMI 276 - AT - Income TaxReopening of assessment u/s 147 - assessee is not holding any agricultural property but credited the agricultural income in the books of account - also share capital and share premium and current liabilities are remained unexplained and unverified before the Ld. AO - HELD THAT - The reopening was made on basis of the information. The assessing authority also completed the verification before come to the conclusion for reopening the case of the assessee. The entire issue was dealt by the Ld. AO very carefully and also the prior approval was obtained from the Ld. PCIT, Bathinda. Assessee was unable to produce any contrary view or any judgment against the observation made by the Ld. AO in recorded reasons. The issue was dealt by the CIT(A) but the assessee was unable to sustain its claim. We find no infirmity in the recorded reason. AO had made the reopening within his jurisdiction. Decided against assessee. Inguine agriculture income - We find that the assessee was unable to substantiate its claim through the evidence in ITAT. Several opportunities were allowed to the assessee but assessee was remained unsuccessful for providing any documents in favour of its claim. The assessee did not possess any agricultural land or property for generating the revenue against this asset. Related to paid up share capital, share premium and current liability and provisions was remained unexplained and unverified. In the hearing before the ITAT the assessee was remained unsuccessful to submit any documents or evidence in its favour. We find no infirmity in the order of the Ld. CIT(A) and Ld. AO. Decided against assessee. Disallowance of Lease money rebate on account of liability created by the SEBI which the assessee company booked as expenses - AO added back the same - CIT(A) had dealt the issue in his order - HELD THAT - CIT(A) has not erred in law as well as on the facts by not allowing the rebate on account of liability created by the SEBI on account of lease money shown as income by the assessee company - We find no infirmity in the order of the Ld. CIT(A).
Issues Involved:
1. Validity of reassessment under section 148 of the Income Tax Act. 2. Classification of gross receipts as income from other sources versus agricultural income. 3. Allowance of expenses incurred by the assessee. 4. Addition of unexplained share capital, share premium, and current liabilities. 5. Rebate on liability created by SEBI. Summary: Issue 1: Validity of Reassessment under Section 148 The assessee challenged the jurisdiction of the Assessing Officer (AO) regarding the reassessment under section 148. The AO reopened the case based on information from a reliable source, conducted verification, and obtained prior approval from the Principal Commissioner of Income Tax (PCIT), Bathinda. The Tribunal found no infirmity in the recorded reason and upheld the AO's jurisdiction. The ground was dismissed. Issue 2: Classification of Gross Receipts The AO added the gross receipts of Rs. 39,03,62,282/- as income from other sources, not agricultural income, due to the assessee's failure to prove the genuineness of the agricultural income and lack of evidence of agricultural land holding. The CIT(A) upheld the AO's decision, and the Tribunal found no infirmity in the order. The grounds were dismissed. Issue 3: Allowance of Expenses The assessee claimed expenses amounting to Rs. 16,90,96,294/- but failed to provide evidence for these expenses. The AO and CIT(A) did not allow these expenses, and the Tribunal upheld this decision. The grounds were dismissed. Issue 4: Addition of Unexplained Share Capital, Share Premium, and Current Liabilities The AO added Rs. 21,63,49,889/- as unexplained cash credits due to the assessee's failure to explain the sources of accretion. The CIT(A) upheld this addition, and the Tribunal found no infirmity in the order. The grounds were dismissed. Issue 5: Rebate on Liability Created by SEBI The assessee claimed a rebate on account of liability created by SEBI amounting to Rs. 15,09,72,412/-, which was added back by the AO. The CIT(A) upheld this addition, and the Tribunal found no infirmity in the order. The ground was dismissed. Conclusion: The Tribunal dismissed all the appeals of the assessee, upholding the decisions of the AO and CIT(A) on all grounds. The order pronounced in the open court on 15.03.2023.
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