TaxTMI 
TaxTMI 
2018 (10) TMI 1405
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.... of a common order. 2. The Assessee is a company and is in the business of investment. This belongs to Mahendra Sethia Group of cases where search and seizure operation was conducted u/s 132 of the Act on 30.11.2012. Notice u/s 153A of the Act was issued to the assessee. In response, the assessee filed return on 28.03.2014. The Assessing Officer completed the assessment u/s 153A r.w.s.143(3) of the Act on 31.03.2015. Aggrieved the assesee carried the matter in appeal. The First Appellate Authority called for a remand report. The AO has prepared the remand report after giving the assessee opportunities and the remand report was forwarded to CIT(A) by the Additional C.I.T. In the remand report the AO stated as follows : "In view o....
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....e existed at the end of the financial year is sufficient to acquire assets existed in the right side of the balance sheet in each case and each assessment year." 3. After considering the remand report, the ld. CIT(A) granted relief to the assessee, as the AO accepted, after due verification, the genuineness of the claim of the assessee. 4. Aggrieved the Revenue is before us on the following grounds of appeal :- "1. That the fact and in the circumstances of the case, the Ld. CIT{Appeals) has erred in law as well as in fact in admitting additional evidence in violation of provisions of Rule 46A of the I.T.Act, 1961. 2. The Ld. CIT(A) erred in law as well as on facts by deleted the addition of undisclosed income to Rs.l....
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....e other hand, objected to the submissions and submitted that the ld. CIT(A) had based his order, on the remand report given by the AO. He pointed out that in the remand report the AO had considered all the evidences given by the assessee and has concluded that the contentions of the assessee are correct. He submitted that the AO cannot file an appeal against the factual findings in his own remand report. He argued that, as the CIT(A) granted relief based on remand report of the AO, an appeal by the AO cannot be maintained against the same. For this proposition he relied on the following decisions :- i)Smt. B.Jayalakshmi vs ACIT, Salary Circle-II, Chennai [2018] 96 taxmann.com 486 (Madras) ii)ACIT vs R.P.G.Credit & Capital ....
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....ssion filed by the AR during the appellate proceedings, I have also considered comments of the Addl.CIT on the remand report and the written submission filed by the AR on such comments as well. I find that the AO himself has reported in the remand report that "inspector attached to his(this) charge was deployed for tracing some of the companies on test check basis. The inspector has stated in his report that on verification of some of the addresses, he could locate the name boards of some of the source companies displayed at the addresses. He also stated that he could see books of accounts of some of the respective sources companies on demand to the people present there, It is revealed to the inspector that in some cases, the source compani....
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....nce of advance existed at the end of the financial year was sufficient to acquire assets existing in the right side of the balance sheet in each case and in each assessment year. Keeping in view the categorical findings given by the AO after due verification of papers and details filed and after proper investigation and report by the inspector attached to the AO in the remand proceedings, the issue involved in this case has been adequately discussed and elaborated by the AO. Accordingly assessee's appeal on ground no 3 is allowed." 9. On these facts the issue is whether the Revenue could at all file an appeal before the Tribunal. The Hon'ble Madras High Court in the case of Smt.B.Jayalakshmi vs ACIT (supra held as follows :- ....