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2014 (2) TMI 980 - AT - Income TaxAdditions made u/s 143(3)/153A of the Act – Block assessment - Admission of additional evidence under Rule 46A(3) – Held that:- The revenue wants to adopt an unfair course for ascertaining the tax liability, firstly by making an arbitrary and untenable sort of ex parte assessment and secondly not ensuring the process for proper evidence to come on record - Thus there is no justification for revenue to challenge the CIT(A)s action in admitting the additional evidence after following the due procedure laid down by the act - CIT(A) has been vested with powers coterminous to that of AO, over and above it to undertake further inquiries and even to enhance the assessment - Observations of CIT(A) clearly indicate the fact that the AO not only had an opportunity of submitting its comments on the merits of the case but also he actually submitted requisite comments - the assessments were completed in unjustifiable manner violating even the basic principles of natural justice. Neither sufficient opportunity of hearing nor time was given to the assessee to represent his case - The questionnaire issued by AO had no question about the agricultural income already assessed -This income was not being shown for the first time and has been regularly accepted year to year by department in preceding years – thus, the assessee had no remedy except to file additional evidence in first appeal – thus, assessee was prevented by sufficient cause in filing these papers during the course of 153A assessment proceedings – Relying upon COMMISSIONER OF INCOME TAX Versus TEXT HUNDRED INDIA PVT. LTD. [2013 (6) TMI 72 - DELHI HIGH COURT] - In 153A/C assessments additions cannot be made unless they are based on any incriminating material or inquiries based on such material. There is neither reference nor reliance on any incriminating material - Besides there is no reference to any inquiries conducted by AO based on any incriminating material – the additions have been rightly deleted by the CIT(A) on this count – the assessee owns a fairly large agricultural holding known as Prag Farms - Agricultural income has been returned and accepted by department year after year - Confirmation from agricultural tenant is on record - AO cannot reject documentary evidence on surmises and conjectures - Assessee has supported his claim based on relevant agricultural record - The tenant has confirmed that the agricultural expenses were borne by him and not by the assessee – thus, there was no infirmity in the order of the CIT(A) – Decided against Revenue.
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