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of <h1>Inadequate Verification Leads to Appeal Success for Revenue in Assessment Dispute</h1> <h3>Dy. CIT 9 (2) (2), Mumbai Versus M/s. Citygold Farming P. Ltd.</h3> Dy. CIT 9 (2) (2), Mumbai Versus M/s. Citygold Farming P. Ltd. - TMI Issues:1. Appeal by Revenue against CIT(A) order for assessment year 2012-13.2. Verification of creditworthiness, genuineness of transaction, and identity of creditor.3. Decision on restoration of matter to AO for fresh assessment.Analysis:1. The appeal was filed by the Revenue against the CIT(A) order for the assessment year 2012-13. The case involved the assessee, a company engaged in various business activities related to agriculture and allied sectors. The dispute arose when the assessee failed to produce necessary documentation regarding a significant advance received from M/s. A.N. Enterprises amounting to Rs. 6,00,00,000. This led to the Assessing Officer issuing a notice under section 133(6) of the Act to the lender, who did not respond, resulting in the AO making an addition to the income.2. The matter was taken to the CIT(A), who allowed the appeal of the assessee. However, during the hearing, the Revenue argued that the CIT(A) had not properly verified the creditworthiness, genuineness of the transaction, and the identity of the creditor. The Revenue requested the matter to be sent back to the AO for further verification. The assessee did not object to this request, leading to a review of the case.3. Upon reviewing the contentions of both parties, the Tribunal found that the CIT(A) had not adequately verified the details submitted by the assessee, including the bank statement, ledger account of the lender, and balance confirmation. The CIT(A) had relied solely on a judgment of the Hon’ble Guwahati High Court without seeking a remand report or verifying the crucial details. As a result, the Tribunal reversed the CIT(A) finding and directed the matter to be restored to the AO for a fresh decision in accordance with the law. The appeal of the Revenue was allowed for statistical purposes, emphasizing the need for a thorough assessment based on verified information.This detailed analysis of the judgment highlights the key issues involved and the decision-making process leading to the direction for a fresh assessment by the Assessing Officer.
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