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TMI Blog2017 (12) TMI 923X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(A) under Rule 46A. The CIT(A) after considering the objections admitted the additional evidences and decided the appeal on the basis of the additional evidences produced by the assessee during the appeal hearing. Having declined to make verifications at the remand stage, the AO cannot agitate against the order of the Ld.CIT(A). Being failed to utilize the opportunity given by the Ld.CIT(A), the AO cannot make out a case for legal battle. CIT(A) has given a finding that the assessee has established the land holdings and receipt of agricultural income on sale of chillies, cotton etc. during the relevant period. After verification of the correctness of land holdings and the agricultural income. - Decided in favour of assessee. - I.T.A.No.118/Viz/2016, Cross Objection No.29/Viz/2016 - - - Dated:- 8-12-2017 - Shri D Manmohan, Vice President And Shri D.S. Sunder Singh, Accountant Member Revenue by : Shri K.C.Das, DR Assessee by : Shri C.Subrahmanyam, AR ORDER Per D. S. Sunder Singh, Accountant Member This appeal is filed by the assessee against the order of the Commissioner of Income-Tax (Appeals) [CIT(A)], Vijayawada vide ITA No.469/CIT(A)/VJA/2014-15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t paid etc. and no reply was received from the above firms. Therefore, the AO issued summons u/s 131 on 11.03.2015 directing the assessee to appear before the AO on 12.03.2013 and record the statement on oath. In the course of recording the statement the assessee could not explain the sources for cash deposits of ₹ 30,00,000/- and agreed for the addition of ₹ 30,00,000/- u/s 68 of the I.T.Act. Similarly, the AO confronted with assessee with regard to regard to agricultural income and the assessee had agreed for the disallowing ₹ 6,74,667/- from agricultural income and assessee the same as income from other source. 3. Aggrieved by the order of the AO, the assessee went on appeal before the CIT(A) and explained the sources of cash deposits stating that the cash deposits were sourced from withdrawal of capital accounts of the firms in which he is a partner, agricultural income and the withdrawal made from the savings bank account of Indian Bank. Further, the Ld.AR submitted before the CIT(A) that the assessee holds 17.8 acres of agricultural land at Thotaravulapadu, Patempadu and Chintalapadu villages in Vijayawada Revenue division. Krishna district and receives n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, the assessee should not have filed appeal before the CIT(A) and requested to uphold the order of the AO. 5. On the other hand Ld.AR argued that the assessee is an individual and after the demise of his father Sri N.Nageswara Rao, he has inherited the agricultural lands owned by his father and he was receiving share income from four firms. After demise of his father the assessee has entered into the business and not aware of the complete facts of the case and complication of income tax. The lands in question were registered in the name of his deceased father, therefore, there was a mistake with regard to the name in the pattadar pass book. Apart from his own agricultural lands, the assessee also owning agricultural lands jointly with Sri N.Tirupathaiah and Sri N.Kasivisweswara Rao. In aggregate, the assessee holds 17.18 acres of agricultural land in Thotaravulapadu, Patempadu and Chintalapadu of Krishna Dist. The agricultural income would be around ₹ 10 lakhs per annum and in the assessment year in question, the assessee had received agricultural income of ₹ 10.12 lakhs. Ld.AR further submitted the copies of the cold storage, agreement of pledge with the In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the agricultural produce and copies of the cold storage bond and the agreement of pledge with the Indian Bank, Nandigama branch. The assessee explained and submitted the evidences with regard to the agricultural land holdings of 17.88 acres located in Thotaravulapadu, Patempadu and Chintalapadu of Krishna Dist., Andhra Pradesh. The assessee also explained the crops grown, yield, price, average agricultural income and the net agricultural income received during the assessment year under consideration. All the evidences furnished before the Ld.CIT(A) were forwarded to the AO, but the AO was not inclined to make verification and investigation with regard to sources of income for cash deposits and agricultural income, instead opposed for admission of additional evidences by the CIT(A) under Rule 46A. The CIT(A) after considering the objections admitted the additional evidences and decided the appeal on the basis of the additional evidences produced by the assessee during the appeal hearing. Having declined to make verifications at the remand stage, the AO cannot agitate against the order of the Ld.CIT(A). The Ld.CIT(A) is vested with the powers to make enquiries before disposing the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause enquiries and give findings. The AO dismissed the claim of the assessee without causing any enquiries regarding the genuineness. The Ld.CIT(A) after considering the remand report and the relevant evidences did not accept the contention of the AO and accepted the sources for the cash deposits and deleted the addition made by the AO. For ready reference, we extract relevant paragraphs of the order of the Ld.CIT(A) which reads as under : 5.3. I have perused all relevant submissions of appellant. 5.3.1. Assessing Officer made addition of ₹ 30 lakhs towards unexplained cash deposits u/s 68 of the Act on the basis of appellant s reply to Question No.13 of statement dated 12.03.2015 wherein appellant replied that he could not explain the sources for the above cash deposits as he had not maintained any books of account. However, appellant s Authorized Representative submitted a constructed cash book of appellant from 01.04.2008 to 31.03.2012 on the basis of bank statements of appellant during the course of appellate proceedings and claimed that appellant had sufficient sources for cash deposits. 5.3.2. Appellant's Authorized Representative explained the so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ): Appellant had transferred all his 2 lakh shares to Mr.Paturi Srinivasa Rao on 04.10.2011. This is evidenced by Schedule V of annual return. Transfer consideration of these shares is said to be ₹ 27 lakhs. This claim requiresverification at Assessing Officer s end. As the transfer of shares took place on 04.10.2011 (i.e) during Asst.Year 2012-13, the long term capital gain on account of share transfer should be assessed to tax in Asst. Year 2012-13. Appellant s Authorized Representative submitted that appellant did not admit LTCG in Asst. Year 2012-13. He had computed the LTCG at ₹ 2,405/-. Assessing Officer is directed to verify the computation and levy due LTCG tax for this asst. year. 2. Purchase of shares of MIs Whitegold Industries (India) Limited (a) Form No.2 (Return of allotment): Appellant had been allotted 3,18,000/- shares of ₹ 10/- each on 30.12.2011. Thus appellant's claim of investment in shares is duly evidenced by relevant details and bank account entries. Appellant could not explain the details before the Assessing Officer at the time of recording of statement on 12.03.2015. Appellant derived share income from the fou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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