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2019 (11) TMI 356 - AT - Income TaxRevision u/s 263 - Capital gain on sale of land - jurisdiction with the AO to make an inquiry on the issue of assessability of capital gain on sale of agriculture land - HELD THAT:- We have gone through the record carefully. Jurisdiction in the AO for passing the impugned order on the present issue was being infused by the order of the ld.Commissioner passed under section 263. Once that order was set side, then there is no issue remained to be inquired at the end of the AO. Power to pass fresh assessment order under section 143(3) r.w.s. 263 with the AO on this issue has been extinguished. Therefore, we do not find any merit in ground no.1 to 8 of the Revenue; they are rejected. Difference in job work income shown in the profit & loss account and income as per form no.26AS - HELD THAT:- No justification to interfere in the order of the ld.CIT(A) on this issue, because, for the differential amount shown in the ITS statement and the profit and loss account, the assessee has furnished all details before the AO, viz. copy of sales and purchase accounts, ledger account of all three parties, copy of job work. AO simply ignored all these details, and without issuing show cause notice on this issue, or even without making any inquiries with the vendors, made the impugned addition. From the impugned order, it emerges out that the assessee has explained with supporting evidences the reason for difference in two statements as netting of income from the job work; and that the entire job work income shown in ITS was reflected in the books of accounts. There is nothing before the AO to make the addition and he simply proceeded on the premise that the assessee failed to provide complete details relating to purchases. It is settled position of the law that no addition can be made on the basis of receipts shown in the ITS alone, unless the AO is able to show with evidence that such income forms part of the income of the assessee. The assessee cannot be expected to prove negative, rather, it is for the Revenue to prove that the assessee has understated its income, and for that matter, received undisclosed income. CIT(A) has considered the issue in right perspective, and rightly deleted the impugned addition. We uphold his order on this issue, and reject this ground of appeal. Deleting the addition u/s 50C by CIT-A - no merit in this ground. Accordingly, this ground stands rejected.
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