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TMI Blog2020 (10) TMI 1276X X X X Extracts X X X X X X X X Extracts X X X X ..... not only confirming but also enhancing the assessment. The orders passed by authorities below are bad in law and are liable to be quashed. 2. In any case, the learned CIT(A) has erred in assuming jurisdiction u/s 251(1)(c) of the Act and erred in enhancing the impugned order which was passed for effect to the order of the honourable High court by treating the entire agricultural income in dispute as business income. The action of CIT(A) in enhancing the income being wholly erroneous both on facts and law applicable is to be disregarded and the enhancement as done is to be deleted. 3. The learned CIT(A) has erred in not appreciating the facts of the case that the assessing officer himself has allowed agricultural income to the extent of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enhancement as done by the CIT(A) be deleted. b) The income as claimed exempt u/s 10(1) of the Act by the appellant be accepted. c) If the agricultural income is assessed as business income then eligible deduction U/s. 801B be granted and d) interest levied be deleted." Brief facts of the present appeal are as under: 2. At the outset, it is necessary to record the brief history of the present appeal which is as under: 1. Ld.AO passed the original assessment order under section 143(3) on 29/03/2004 making addition of Rs. 3,84,13,288/- by denying exemption under section 10 (1) of the Act in respect of agricultural income from contract farming. Ld.AO also disallowed provision for guarantee amounting to Rs. 16,21,841/-. Relevant order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble High Court framed the question of law to be answered as under: "1. Whether the Tribunal was right in holding that income derived by the assessee from manufacturing of seeds and sale of the same would amount to agricultural income which would be exempt under section 10 (1) of the Act? 2. Whether the Tribunal was right in not taking into consideration the fact that assessee could not have had agricultural land in view of the provision of section 79-A of Karnataka Land Reforms Act?" 6. In appeal filed by assessee being ITA No. 284/2007, following question of law was admitted by Hon'ble High Court: "whether the Tribunal having held that hybrid seeds produced by the appellant was agricultural produce and income therefrom is agri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Ld.CIT(A), assessee is in appeal before us. 7. It has been submitted by Ld.AR that, agricultural income amounting to Rs. 3,43,11,842/- was exempted by Ld.AO himself in original assessment order dated 29/03/2004. He submitted that, this issue was not disputed by assessee before any of authorities in the 1st round of appeal, and that, this issue does not arise out of order 14/07/2006 passed by Tribunal against which revenue and assessee preferred appeal before Hon'ble High Court. He submitted that, issue alleged by both assessee as well as revenue before Hon'ble High Court was in respect of income amounting to Rs. 3,84,18,913/- that arose from activities carried on in contract land. He placed reliance on computation by Ld.AO in original a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e before Ld.CIT(A). 13. On a query being raised by the bench regarding any further appeal preferred by assessee, Ld.AR submitted that, assessee has filed SLP before Hon'ble Supreme Court, against order passed by Hon'ble High Court, which was admitted on 08/01/2015 and has been converted into Civil Appeal no.000356/2015. Ld.AR has filed case status before Hon'ble Supreme Court, according to which the appeal is pending final hearing. 14. We note that, the issue considered by Ld.CIT(A) for invoking section 151 was never alleged by assessee in first round of appeal, before Ld.CIT(A) or by revenue before this Tribunal. Admitedly, assessee should not have filed appeal before Ld.CIT(A) against Ld.AO's OGE to order passed by Hon'ble High Court. E ..... X X X X Extracts X X X X X X X X Extracts X X X X
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