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2018 (6) TMI 1387 - AT - Income TaxExemption u/s 10(1) on account of agricultural income - Assessing Officer held mere holding of agricultural land does not prove that assessee has produced lemon grass which could fetch it ₹ 70,76,750/- - assessee did not produce even a single bill/ invoices against purchase of fertilizer and manure expenses - Held that:- There is substantial increase in agricultural income only during the impugned assessment year. It is not known as to whether the price of lemon grass has fallen down or the quantity grown has fallen down in the preceding or subsequent years. Although the CIT (A) had passed certain remark that when the Assessing Officer had passed the order the return of income for the two subsequent years would have also come on record, however, he himself has not bothered to verify the same. It is the settled proposition of law that the powers of the CIT (A) are co-terminous with that of the Assessing Officer. He can do what the Assessing Officer has failed to do. In the instant case it appears that the CIT (A) was carried away by the arguments advanced by the assessee before him and failed to discharge the powers conferred upon him. When the assessee did not produce the books of account although it is a private limited company and did not produce the relevant details as called for by the Assessing Officer, the CIT (A) should not have granted substantial relief to the assessee on account of agricultural income which under the facts and circumstances of the case appears to be abnormal - restore the issue to the file of the CIT (A) with a direction to decide the issue afresh in accordance with law after giving due opportunity of being heard to the assessee - Appeal filed by the revenue is allowed for statistical purposes.
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