TMI Blog2015 (12) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the Act ) for AY 2003-04 vide its order dated 24.03.2006. 2. At the outset, it is noticed that this appeal of revenue is barred by limitation by 25 days and revenue has filed Condonation petition supported by affidavit stating some reasons. Then this fact was confronted to Ld. Sr. counsel for the assessee Shri Subhas Agarwal, he fairly conceded that he has no objection if delay is condoned and appeal is admitted. Hence, we admit the appeal and adjudicate the same. 3. The first issue in this appeal of revenue is against the order of CIT(A) deleting the addition made by AO of bogus liability of ₹ 30 lakhs after taking remand report from AO. For this, revenue has ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the AO, which is reproduced in para 4 above. 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 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leveling and cutting jungle and weeding out unnecessary weeds. The payments are also made for the purpose of cultivation and filling work. According to CIT(A), the very nature of these expenses cannot be held as capital and in the year under consideration no new area was brought to cultivation and this was expense for existing unit. Accordingly, he deleted the disallowance. Aggrieved, now revenue is in appeal before us. 8. We have heard rival submissions and gone through facts and circumstances of the case. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determine the taxable business by observing in para 24 of his order, which reads as under: 24. I have considered the submissions of the appellant and perused the assessment order. In principle, I agree with the submission of appellant company that the AO has not correctly applied the provisions of Rule 8 to determine the taxable business income. He is directed to compute the correct taxable income as per Rule 8 while giving effect to the appellate order. The ground no. 10 is allowed. Aggrieved, revenue is in appeal before us. 11. We have heard rival submissions and gone through facts and circumstances of the case. We find that the CIT(A) has merely directed the AO to compute the business income after applying the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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