9911796707
TMI Blog2013 (5) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... the course of search and on the basis of further investigations, the net peak of cash credits was worked out in respect of unexplained investments from the assessment year 1998-99 to 2003-04. After considering the net peak credit available, no addition was made in respect of unexplained investment/ credit in the original assessment order dated 29.3.2006. On appeal by the Assessee the CIT(A) vide his order dated 14.3.2007 had enhanced the assessment by adding a sum of Rs. 30,45,000/- being the amount shown as advances to Farmers made on 31.3.2003. It would appear that this sum was first added in the assessment for AY 2004- 05 but was deleted by CIT(A) with a direction to consider it for AY 2003-04. Accordingly the CIT(A) in the course of App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ff against peak cash credit which was also available outside the books of account and assessed to tax once it was recorded in the books of account. In view of the same, the Assessing Officer is directed to verify the peak credits assessed for the assessment years 1999-2000 to 2003-04 and set off the same against the amount of Rs. 30,45,000/- and add the balance amount to the total income assessed for the AY 2003-04." 3. The AO gave effect to the order of the CIT(A) on 15.11.2007 adding Rs. 11,01,000/- From the addition of Rs. 30,45,000/- the AO reduced Rs. 19,44,000/- being the peak cash credit for AY 1998-99. to 2003-04. 4. Thereafter the AO issued an order of rectification u/s 154 purportedly made on the same date as that of the order g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e directions of the CIT(A)-I in the first round and simply carried away by the facts and findings given therein for reaching such conclusive directions. The CIT(A) had in the first round directed the AO to allow peak of cash credits of Rs. 19,44,000/- (from assessment year 1999-2000 to 2003-04 out of the total peak of Rs. 23,44,000) from unaccounted cash credit of Rs. 30,45,000/- (advances to farmers) and bring to tax the unaccounted cash credit being advances given to farmers at Rs. 11,01,000/- during the present assessment year 2003-04. 8. In the present appeal the CIT(A) accepted the plea of the Assessee on jurisdiction observing as under: "18. However, the claim of the assessee that the order u/s 154 cannot be on the basis of change/d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 14/09/2007, a consequential order dated 15/11/2007 was passed and served on the assessee on 23/11/2007. It is submitted that on 14/03/2008 the assessee received by speed post an order u/s 154 by which it was sought to amend the consequential order passed earlier and this revised order u/s 154 was also dated 15/11/2007. It is submitted that this order was dispatched on 12/03/2008 as per the postal stamp on the departmental envelope, therefore, this order was received four months after the date of passing. The learned counsel for the assessee submitted that an appeal was filed before the CIT(A) for the 2nd order u/s 154 wherein it was pleaded as follows:- a) The order passed u/s 154 was not passed on the date mentioned in the order, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w is not a mistake apparent from records. For this proposition, he relied upon the decision of the Hon'ble Supreme Court in the case of T.S. Balaram Vs ITO, 82 ITR 50(SC). 13. The learned Departmental representative supported the order of the AO stating that it was an unintended error sought to be corrected by the AO and hence requires to be upheld. 14. We have heard both the parties and perused the record. From the records it is clear that the CIT(A) in his order dated 14.9.2007, in the first round of appeal, had clearly given a direction to adjust against the addition of Rs.30,45,000/-, peak cash credit which was also available outside the books of account and assessed to tax once it was recorded in the books of account. The directions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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