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2015 (10) TMI 62 - AT - Income TaxRevision u/s 263 - AO failed to examine and consider the quantum of agricultural income and pension income earned by assessee - CIT(A) revising the assessment completed u/s 143(3) read with section 147 - Held that:- As it is clear that assessee himself has admitted that he has earned income from agriculture as well as pension. However, neither in the course of assessment proceeding or while completing the assessment AO has paid any attention to nondisclosure of income from agriculture and pension. He simply completed the assessment by only bringing to tax accrued interest on bank deposit thereby completely overlooking the issue of pension earned and agricultural income. This reveals not only non-application of mind on the part of AO, but, also total lack of enquiry. The contention of the learned AR that when assessee is declaring ‘nil’ income there is no necessity to show agricultural income is devoid of merit. It may be true that when the Assessee earned income only from agriculture it may not be taxable. However, in the present case, AO has determined taxable income at ₹ 19,94,589. Therefore, if there is any agricultural income, the same is required to be considered for rate purpose. AO having failed to examine and consider the quantum of agricultural income earned by assessee, assessment order is certainly erroneous and prejudicial to the interests of revenue. Further, as can be seen from the reply dated 04/08/10, assessee himself admitted of having earned pension income. That being so, how and under what circumstances, assessee filed his return of income showing ‘nil’ income and the AO also overlooked to consider pension income is not understood. Therefore, failure on the part of AO to examine the issue relating to earning of agricultural income and pension income has rendered the assessment order erroneous and prejudicial to the interests of revenue. In these circumstances, CIT, in our view, was justified in setting aside the assessment order by exercising his revisional powers u/s 263 of the Act. - Decided against assessee.
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