2013 (11) TMI 420

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....me issue, both of these appeals are being disposed of by way of this consolidated order. 2. The common grievance raised by the Revenue in one of the appeals is as follows :-        "1. That on the facts and circumstances of the case, Ld. CIT(A) has erred in law in directing the A.O. to take Rs.29,42,802/- being profit on sale of bought tea as a part of composite income for applying Rule-8 without appreciating the fact that profit on sale of bought tea does not come within the composite income as the said profit does not relate to the activity of growing and manufacturing of tea, which is just a trading activity wherefrom the assessee gets profit." 3. We will first take up the appeal in ITA No.592/Kol/2012. B....

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....ufacturing of tea taken place by the appellant, the income of which is composite no doubt, proceeding to treat the entire income of Rs.29,42,802/- subject to central income-tax which is quite unjustified". The contention of the assessee thus was that only 40% of this amount can be taken as central income while the balance is to be taken as agricultural income subject to agricultural income tax. Based on these and other arguments advanced by the assessee, learned CIT(A) upheld the grievance of the assessee and observed as follows:-          "4. I have carefully considered the facts narrated by appellant and order passed by A.O. u/s. 143(3) and u/s.154. It is seen that while passing order u/s. 143(3), ....

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....figures available in the further explanation and claimed under I. T. Act., 1961 in the annual report for current year filed by the appellant. A.O. has rejected 154 application merely on the ground that application is not within time. But fact which remains is that order u/s. 143(3) is modified, five to six times during this period, on various occasions. The latest order stated to be passed by A.O. U/s. 254/251/154/143(3) is dated 27.10.2008 and therefore, as the original order u/s. 143(3) dated 21.03.2001 is merged with the order passed on 27.10.2008. The time limit for rectification is still available to A.O. A.O. while passing order U/s. 154 has not given any reason or has not contravened the facts narrated by appellant in application u/....