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2017 (12) TMI 923 - AT - Income TaxUnexplained cash deposits - Held that:- AO did not cause necessary verification, even during the remand proceedings and the CIT(A) has deleted the addition after verification of the additional evidences furnished by the assessee during the appeal proceedings. During the appeal hearing also, the Ld.DR did not place any evidence to controvert the sources explained by the assessee before the Ld.CIT(A). It is settled position of law that the CIT(A) is vested with the powers of making independent verification at appeal stage and the Ld.CIT(A) has done the same. Therefore we do not find any reason to interfere with the order of the Ld.CIT(A), accordingly we uphold the order of the Ld.CIT(A) and dismiss the appeal of the revenue. Addition of agricultural income - Held that:- All the evidences furnished before the Ld.CIT(A) were forwarded to the AO, but the AO was not inclined to make verification and investigation with regard to sources of income for cash deposits and agricultural income, instead opposed for admission of additional evidences by the CIT(A) under Rule 46A. The CIT(A) after considering the objections admitted the additional evidences and decided the appeal on the basis of the additional evidences produced by the assessee during the appeal hearing. Having declined to make verifications at the remand stage, the AO cannot agitate against the order of the Ld.CIT(A). Being failed to utilize the opportunity given by the Ld.CIT(A), the AO cannot make out a case for legal battle. CIT(A) has given a finding that the assessee has established the land holdings and receipt of agricultural income on sale of chillies, cotton etc. during the relevant period. After verification of the correctness of land holdings and the agricultural income. - Decided in favour of assessee.
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