TaxTMI 
TaxTMI 
2022 (5) TMI 1334
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.... Order passed u/s. 263 on the following grounds in so far as it is prejudicial to the as it is opposed to law and circumstances of the case: - Originally the Appellant has taken only one ground relating to deduction u/s.35(2AB). The following grounds were not taken by oversight. Hence the Appellant is filing Revised Grounds of Appeal as mentioned below. 1. The Pr. CIT erred in invoking the provisions of section 263 of the Act ignoring the fact that the Appellant company's activities falls under Agricultural activities and the said agricultural income is exempt from tax u/s.10(1A) of the Act and the same was examined by the A.O. during the course of assessment. 2. The Pr. CIT was not correct in not appreciating....
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....sessment order the Ld.AO disallowed claim of Rs. 6,73,43,469/- claimed as weighted deduction under section 35(2AB) of the act by assessee thereby determining the total taxable income of Rs. 1,52,14,731/- in the hands of assessee. 2.3 The Ld.Pr.CIT, called for the assessment records and examined the exemption claimed on agricultural income under section 10 (1) of the Act claimed by assessee amounting to Rs. 4,65,63,312/- that was allowed by the Ld.AO in the order passed under section 143 (3) of the Act. 2.4 The Ld.Pr.CIT was of the opinion that, the assessing officer did not make sufficient enquiries to understand the real activities carried on by the assessee and whether such activities were eligible for claim under section 10(1) of t....
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....nother letter dated 23/03/2021 justifying the claim of agricultural income to be exempt as contemplated under section 10 (1) of the Act. 2.6 The Ld.Pr.CIT, after considering the submissions of assessee passed the 263 order by setting aside the assessment order passed by the Ld.AO, with a direction, to carry out fresh examination of the claim of agricultural income claimed to be exempt by the assessee under section 10 (1) of the Act. 2.7 Aggrieved by the order of the Ld.Pr.CIT, the assessee is in appeal before this Tribunal. 3. All the grounds raised by assessee is in respect of the validity of the proceedings initiated under section 263 of the Act by Ld.Pr.CIT. 4. The Ld.AR submitted that, the activity carried on by the assessee....
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....Vs P Sudhar [2015] 61 taxmann.com 17 (Karnataka), 6. The Ld.AR contended that, the entire proceedings initiated under section 263 of the Act, is based on the decision of Hon'ble Karnataka High Court in case of Namdhari Seeds Pvt.Ltd., wherein, the Hon'ble Court on similar set of facts, denied the claim under section 10(1) of the Act. 7. The Ld.AR submitted that, the assessee entered into agreement with farmers for production of hybrid seeds and that, the farmers upon the instructions and specifications and guidance by the assessee, carried on with the cultivation of agricultural produce. He submitted that, the assessee not only produces in the leased lands, but it is also producing in its own land, and hence the observation of the Ld.....
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....of Hon'ble Bombay High Court in case of a than the Ltd versus CIT reported (2021) 124 taxman.com 435. We have perused submissions advanced for both sides in light of records placed before us. 10. In the present facts, it is not in dispute that, the assessee claimed exemption under section 10(1) of the Act, of agricultural income amounting to Rs.4,65,63,312/-. It is the submission of the Ld.AR that, a specific query was raised by the Ld.AO during original assessment proceedings regarding the exemption claimed amounting to Rs.4,65,63,312/-. Page 11 of the paperbook filed before this Tribunal is the notice issued under section 143(1) of the Act, wherein specific query relating to agricultural income of Rs.4,65,63,312/- claimed by assesse....
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.... the Ld.AO it is prima facie inferred that the no details are filed by the assessee and the Ld.AO has not verified the exemption claimed by the assessee under section 10(1) of the Act. Thus, in our view, the original assessment is completed without proper enquiries, that necessitated the Ld.Pr.CIT to issue section 263 of the Act. We draw support from the decision of Hon'ble Karnataka High Court in case of CIT vs. Infosys Technologies Ltd., reported in (2012) 17 taxmann.com 203. Therefore in our view, the decisions relied by the Ld.AR are distinguishable on facts with that of assessee. We therefore do not fine any infirmity in the action of the Ld.Pr.CIT in invoking the provisions of section 263 of the Act. 14. The Ld.Pr.CIT has directed ....