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2015 (12) TMI 103 - AT - Income TaxAddition made for bogus liability - CIT(A) deleted the addition - Held that:- AO has just made addition on estimate basis without giving any basis or finding as can be observed from the observation of the AO. Even otherwise, the CIT(A) after going through the remand report of the AO dated 09.11.2009 noted that the assessee company filed partywise details of liabilities for expenses, liabilities for others, liabilities for garden and liabilities on account of trade deposits and advances. The AO during remand proceeding could not point out any defect or adverse inference from these details. In such circumstances, we are of the view that the CIT(A) has rightly accepted the contention of the assessee after taking remand report from the AO. Even now before us the Ld. Sr. DR could not point out what is the error in the order of the CIT(A) or the factual finding is wrong. In the absence of the same and the facts narrated by CIT(A), we confirm the order of CIT(A) - Decided against revenue. Addition made by AO on account of expansion of maintenance of new extension as capital in nature - CIT(A) deleted the addition - Held that:- We find that the assessee has incurred expenses for maintenance of existing bushes which involved planting, growing and nurturing of such tea bushes which are entirely necessary for basic operation and manufacturing and production of tea. The assessee produced copy of ledger account before CIT(A) from where he observed that these expenses were incurred for payment of casual workers for uprooting, leveling and cutting jungle and weeding out unnecessary things and accordingly, these expenses are in the nature of revenue expenditure and cannot be held to be capital in nature. We concur with the finding of CIT(A) in view of the above facts and circumstances and accordingly, this issue of revenue's appeal is dismissed. - Decided against revenue. Direction to AO to apply rule correctly and determine the loss from tea business as income from other sources by CIT(A) - Held that:- We find that the CIT(A) has merely directed the AO to compute the business income after applying the provisions of Rule 8 of the I. T. Rules. However, we are of the view that the CIT(A) has no power under the Act to set aside the issue but in our view, we direct the same accordingly. This issue of revenue's appeal is allowed for statistical purposes. - Decided in favour of revenue for statistical purpose.
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