The Indore Bench of Income Tax Appellate Tribunal (ITAT), held that instead of conducting any verification in compliance of the direction of the Tribunal, the Assessing Officer has made straight away the addition as it was made in the original assessment order.
The assessee in this case is M/s Enbee Plantation Ltd, has gone into liquidation and the official liquidator has been appointed. This is second round of litigation as the dispute in the present appeal of the revenue was also carried to this Tribunal by the assessee. This issue was set aside by the Tribunal to the record of the AO. The AO repeated the addition while passing the assessment order in pursuant to the directions of this Tribunal.
On appeal by the assessee before the Commissioner of Income Tax (Appeals), it has deleted the addition of Rs. 3,89,76,161/- made by the AO on account of Income from other source as per Section 56 of the Income Tax Act,1961.
The Revenue filed an appeal before the Tribunal challenging the order of the CIT(A). The Departmental Representative P.K. Mishra submitted that the assesse has not filed any evidence for verification and examination of the AO and therefore, the AO has made addition in respect of the sales of agricultural produce claimed by the assessee.
No one appeared on behalf of assessee.
The Bench comprising of Vijay Pal Rao, Judicial Member and B.M. Biyani, Accountant Member observed that it is specifically made clear by the Tribunal that the AO has to decide the matter afresh after considering assessee’s submission and observation made by the Tribunal with regard to the genuineness of the assessee being engaged in agricultural produce and holding huge agricultural land.
It is further observed that the assessee has already produced the record at the time of original assessment and Tribunal has already given a finding so far as the genuine agricultural activity and produce of the assessee as well as sales made to M/s Tirupathi Agency then what was to be examined in the set aside proceedings by the AO to segregate the details of the sales made to M/s Tirupathi Agency and other parties if any.
Thus, it is clear that the AO has not complied with the directions of the Tribunal while passing the impugned order and just repeated the addition on the ground that the assessee has not produced any new facts or explanation with supporting evidence. Instead of doing any verification in compliance of the direction of the Tribunal, the AO has made straight away the addition as it was made in the original assessment order.
Hence appeal of the revenue was dismissed.
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