TaxTMI 
TaxTMI 
TaxTMI 
2017 (12) TMI 923
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....O) has issued notice u/s 143(2) and found that the assessee is holding the agricultural land to the extent of 12.18 acres and 8.79 acres jointly with Shri N.Tirupathaiah and Sri N.Kasivisweswara Rao. The assessee also furnished pattadar pass books which are in the name of Sri Nelakuditi Nageswara Rao. Since the details recorded in the pattadar pass books are not tallied with regard to the name and minor discrepancies, the AO had issued the notices u/s 133(6) calling for information from the Mandal Tehsildar, but the AO has not received any response from the Mandal Tehsildar. 2.1. Further, the AO found cash deposits of Rs. 20,00,000/- on 05.05.2011 from the bank account statement of Indian Bank, Nandigama Branch which was transferred to M/s Whitegold Industries India Pvt. Ltd for purchase of shares in the said company. The AO further noticed the cash deposit of Rs. 10,00,000/- on 11.05.2011 which was also transferred for purchase of shares in M/s Whitegold Industries India Pvt. Ltd. In aggregate, the cash deposits were amounting to Rs. 30,00,000/- in the Bank account which were transferred to M/s Whitegold Industries India Pvt. Ltd. The assessee explained that he had sold some shar....
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.... had filed additional evidences, the CIT(A) forwarded the additional evidences along with written submissions to the AO to submit the remand report. The AO without making fresh enquiries submitted the remand report to the CIT(A), basing on the information available in the assessment record and requested the Ld.CIT(A) not to consider the additional evidences and to uphold the addition made by the AO. The CIT(A) has considered the remand report and the arguments of the AO and did not agree with the AO that the additions were made on agreed basis and admitted additional evidences and allowed the appeal of the assessee and deleted the addition of Rs. 30,00,000/- and Rs. 6,74,667/- relating to agricultural income. The Ld.CIT(A) also directed the AO to compute the capital gains for sale of shares after re verification. 4. Aggrieved by the order of the Ld.CIT(A) the revenue is in appeal before this Tribunal. During the appeal hearing, Ld. DR argued that the AO has called for the information since no details were forthcoming the AO compelled to issue summons and record the statement. During the proceedings of recording the statement, the assessee had agreed to make the addition of Rs. 30,....
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....r, Indian Bank and Whitegold industries India Pvt. Ltd. and Energy Leaders Batteries India Pvt. Ltd. The statement recorded from the assessee without giving opportunity should not be taken cognizance and law does not prohibit the assessee from his right to appeal before the appellate authorities. Though the CIT(A) has called for the remand report, the AO chose not to make fresh enquiries and hence, the Ld.CIT(A) has rightly deleted the additions and accordingly argued that no interference is called for in the order of the Ld.CIT(A) and the same required to be upheld. 6. On the other hand, Ld.DR vehemently supported the orders of the AO. 7. We have heard the rival submissions and perused the material placed on record. In this case, the assessee had made cash deposits of Rs. 20,00,000/- in the savings bank account on 05.05.2011 and Rs. 20,00,000/- on 11.05.2011 which was brought to tax by the AO. Similarly, the assessee declared agricultural income of Rs. 10,12,000/- due to mistakes in the pattadar passbooks, the AO disbelieved the land holdings and disallowed Rs. 6,74,667/- out of agricultural income of Rs. 10,12,000/- and brought to tax under the head other sources. Both the addi....
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....n. In such circumstances, it is the obligation on the part of the AO to make proper verifications at least at remand stage and submit proper remand report with complete details and correct information. Being failed to utilize the opportunity given by the Ld.CIT(A), the AO cannot make out a case for legal battle. In this case, the CIT(A) verified the land holdings and verified the confirmation letter issued by the Indian Bank, Nandigama on 12.01.2015 and given a finding that lands in survey No.17/1, 19/C & 19/2A in Chintalapadu Village stood in the name of the assessee's father. The CIT(A) has given a finding that the assessee has established the land holdings and receipt of agricultural income on sale of chillies, cotton etc. during the relevant period. After verification of the correctness of land holdings and the agricultural income, the CIT(A) has accepted the assessee's contention with regard ot the agricultural income and deleted the addition made by the AO. Since the CIT(A) deleted the addition after due verification of the details filed by the assessee, we do not find any infirmity in the order of the CIT(A) and the same is upheld. 7.1. With regard to the addition of Rs. 30....
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....ral loan sanctioned by bank against the security of stock of agricultural produce. Appellant had agricultural loan account with Indian Bank, Nandigama and details are as follows : Rs.11,00,000/- Agri Short Term Loans Details A/c No.884064740 A/c No.900123009 A/c No.6013386178 Limit Rs. 5 Lakhs Rs.6 lakhs Rs.8,85,000/- Drawing Power Rs.7.5 lakhs Rs.9,04,000/- - 5.3.3. Appellant's Authorized Representative submitted copies of Form No.2 and Form No.20B of the Companies Act, 1956 to evidence the following: 1. Purchase of shares of ELBI Limited (not a listed company) (a) Form No.2 (Return of allotment) List of allottees of Equity shares of "Energy Leader Batteries India Limited" as on 30.09.2008 2 lakh shares of Rs. 10/- each of the above company had been allotted to the appellant as shareholder(Folio No.18. Certificate No.36. Distinctive Nos. 13113831- 13313830). Purchase of these shares is evidenced by debit entry for payment of Rs. 20 lakhs by cheque No.195879 dated 26.09.2008 in the joint bank account of appellant and his mother with Indian Bank, Nandigama (A/c No.501443319)....