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TMI Blog2022 (2) TMI 638X X X X Extracts X X X X X X X X Extracts X X X X ..... .f. 01.06.2015 that an assessment order passed without making enquiry or verification is deemed to be an erroneous one in so far as it is prejudicial to the interest of Revenue. We thus uphold the learned PCIT's revision jurisdiction direction herein in principle. It shall however be open to the assessee to raise all factual as well as legal arguments before the Assessing Officer in support of her impugned exemption claim as per law; if so advised in consequential proceedings. The assessee fails in all of her substantive grounds. - ITA No. 224/Hyd/2021 - - - Dated:- 3-2-2022 - A. Mohan Alankamony , Member ( A ) And S. S. Godara , Member ( J ) For the Appellant : K. C. Devdas For the Respondents : Rajendra Kumar ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Appellant that is production and sale of banana saplings by carrying out various phases to make the production marketable is an agricultural activity and therefore the Assessing Officer was right in concluding that the operations carried out by the Appellant was agriculture in nature and the income arising there from was exempt. 4. The Ld. Pr. CIT on a wrong foundation of reasoning, misconception of facts and nonappreciation of the operations carried out by the Appellant came to an erroneous conclusion that the assessment order passed by the A.O. was erroneous and prejudicial to the interest of Revenue. 5. The Ld. Pr. CIT failed to note that the Assessing Officer in an order passed u/s. 143(3) on 28.12.2017, after applicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment as an erroneous one causing prejudice to the interest of Revenue. She proposed to treat the assessee's income arrived from banana saplings as a business activity than that derived from agricultural operations eligible for the foregoing exemption. The assessee strongly contested the PCIT's notice to this effect. We note from a perusal of PCIT's detailed discussion at para 6 that she has thrown very much a detailed light on the entire process adopted in assessee's line of business as under: 6. Before proceeding to the submission of assessee, it is pertinent to understand the nature of activities carried out by the assessee. The assessee is in business of producing and selling banana saplings by adopting tissue c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred to specific culture media in glass bottle containing a mixture of chemicals i.e. mixture of nitrogen, phosphorus, potash, vitamins etc. To this, Agar which is a sea product and RO water is added. The piece of sucker is kept in the said media for 3-4 weeks. (iv) Phase Three - Root Generation: The developed shoots are aseptically transferred to fresh medium supplemented with growth regulator which promotes root initiation. Rooting takes place after 2-3 weeks of incubation in the growth rooms. The rooted plants are called plantlets. The plantlets are taken out of the agar and planted in small cups containing sawdust, sand and other substances. These plants are called Ex Agar. (v) Phase Four - Primary and Secondary Hardening: The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing prejudice to the interest of revenue. Mr. Devdas has filed the assessee's twin paper books running into 69 pages on all factual details and 85 pages compiling the relevant case law; respectively. He failed to rebut the most clinching fact that the Assessing Officer's regular assessment herein had nowhere carried out the necessary factual verification before holding the assessee eligible for the impugned section 2(1) exemption of agricultural income. We make it clear that the PCIT has elucidated the detailed process in tissue culture activity which had neither been examined by the Assessing Officer nor the assessee had filed the corresponding details. We also deem it appropriate to quote that the legislative amendment made in sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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