2020 (10) TMI 1051

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.... 1. That the Ld. Pr. CIT(A) erred in invoking provisions of section 263 and setting aside order of assessment dated 31.10.2016 to be framed denovo. 2. That the Ld. CIT(A) erred in holding that the order of assessment passed by the A.O was erroneous and prejudicial to interst of revenue as claim of agriculture income was accepted by A.O in original assessment proceeding without any verification which allegation is factually incorrect. 3. Brief facts relating to this issue is that the assessee is a Madhya Pradesh Government undertaking engaged in the business of forestry and agriculture. The assessee filed its original return of income on 29.09.2014 showing income at Rs. 17,77,18,930/-. The case was selected for scrutiny under ....

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....s. 54,82,62,263/-). So prima facie admissibility of agriculture income in the case is not proved. In absence of material evidence the income claimed as agriculture income should have been treated as income from other sources. 5. On the basis of the above observation Ld. PCIT issued a show cause notice u/s 263 of the Act dated 12.03.2019. In compliance there to assessee made necessary submissions and after going through the same Ld. Pr.CIT came to the conclusion that the Ld. A.O has not examined the material facts of the case with regard to the issue raised in the show cause notice. Ld. Pr.CIT has accordingly set aside the order of Ld. A.O u/s 143(3) of the Act and directing it to be framed denovo after examining the issue referred in the....

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....notice issued by Ld. Pr.CIT relating to admissibility of agriculture income i.e. assessment of income to the extent of Rs. 54.82 crores, they are admitting the fact that this issue was not examined by Ld. A.O and Ld. CIT(A) has rightly directed to examine this issue to the Ld. A.O. However direction of Ld. Pr. CIT to the Ld. A.O for framing denovo assessment will not be justified since the additions made in the assessment proceedings u/s 143(3) of the Act has travelled up to the Tribunal, Indore Bench and the additions so made on account of lease rent and disallowance of corporate expenses have been deleted by the Tribunal. 10. On going through the order of Tribunal, Indore Bench dated 21.8.2018 vide ITA No.453/Ind/2017 in assessee's own....