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TMI Blog2013 (11) TMI 420X X X X Extracts X X X X X X X X Extracts X X X X ..... t was completed under section 143(3) and yet no material was brought on record to support such a finding - In this view of the matter, decided against the Revenue. - I.T.A. Nos. 524 & 592/Kol/2012 - - - Dated:- 27-8-2013 - MR. M.L. MEHTA, J. For the Appellant: Shri Dilip Kr. Rakshit, JCIT, Sr.DR For the Respondent: Shri P.K. Saha, FCA ORDER Per Shri Pramod Kumar; 1. By way of these appeals, the Assessing Officer has challenged correctness of learned CIT(A) s consolidated order dated 8th December, 2011, in the matter of rectification proceeding u/s. 154 r.w.s. 143(3) of the Income Tax Act 1961, for the assessment year 1998-99. As both of these appeals call into question correctness of the same CIT(A) s consolidated orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tea manufacturing business. 4. While the Assessing Officer reduced the above amount from profit as per Profit and Loss account, he did not make any further adjustment in respect of the said Rs.29,42,802/-. 5. It was in this backdrop that the Assessing Officer vide order dated 16.09.2003, added back Rs.29,42,802/- to the business income of the assessee and treated the same as profit on sale of bought tea . Even though the order was passed on 16.9.2003, it was eventually served on the assessee, as stated in the uncontroverted statement of facts filed before the CIT(A), on 15.5.2009. Aggrieved, assessee carried the matter in appeal before the CIT(A). It was submitted that the amount of Rs.29,42,802/- reflecting the growing and ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out that the A.O. has decided the above ratio in order to decide the taxable income in view of Rule 8. But while calculating the taxable income he has not properly applied the ratio as decided and discussed in assessment order. 4.2. The appellant is Tea Company and major part of tea manufactured was out of bought tea leaves and small quantity of own tea leaves were cultivated and used in manufacturing activity. The ratio laid down by Assessing Officer while passing order u/s. 143(3) of the I. T. Act., 1961 is based on the ratio of bought tea and cultivated tea. The ratio is therefore, based on the figures available in the further explanation and claimed under I. T. Act., 1961 in the annual report for current year filed by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer is aggrieved of the relief so granted by the CIT(A). 7. We have heard the rival contentions, perused the materials on record and duly considered facts of the case in the light of the applicable legal position. 8. We have noted that there is no finding anywhere in the assessment order to support AO s stand that Rs.29,42,802/- represents the income from trading of tea. We have also noted that there is a categorical mention of assessee s claim about the said profit being in the nature of agricultural profits inasmuch tea was grown by the assessee, and, this claim remains uncontroverted. Once the income is from the tea grown by the assessee, as is the settled legal position in view of Rule 8 of the Income Tax Rules 196 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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