TMI Blog2019 (11) TMI 356X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2016 holding that the assessment passed vide order dtd. 28.2.2014 was erroneous and prejudicial to the interest of revenue on certain issues. In consequence to that order, the AO has issued notice to the assessee calling for the details and explanation.' The assessee is an individual and derives income from business carried on by her under the name and style of Auto Craft. The AO has passed order u/s. 143(3) r.w.s. 263 of the Act after making following adjustments to the returned income of the assessee. Particulars Amount Income as per the Return of income 16,96,560/- Additions: Long term capital gains 1 0,49,84,1 50/- Deemed income under section 50C 1,89,250/- Addition of difference between job work income and income reported in ITS statement 27,43,663/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der No.l348/Ahd/2016. The addition made on account of long term capital gain in the A.Y. under consideration has been dealt by the Hon'ble ITAT in the said order as under:- 12. We observe in these peculiar facts that the Revenue's latter plea that the above agreement to sell as well as the one handing over position are not valid since not registered documents does not deserve acceptance. We are of the opinion that the present is a case wherein the assessee could not have got the above documents registered in view of the statutory bar imposed, by the legislation hereinabove that a non agriculturist is not permitted to purchase agricultural lands. The assessee could at the best take recourse to unregistered agreements only so as to enter into part performance of the contract till the time she got Collector's approval. We find that above decision of hon'ble Punjab Haryana High Court did not contain such a statutory bar. Their lordships therefore decided in the said case that Section 2(47)(v) bodily transposes into itself Section 53A of the Transfer of Property Act r.w. corresponding Section 17(1) of the Indian Registration Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d remand order in exercising revisionary jurisdiction u/s. 263 of the Act. It has already come on record that he himself absented in the show cause notice that the Assessing Officer had accepted assesee's claim of having transferred the land in assessment year 2007-08 (supra). He therefore seems to have treated it as a case wherein the Assessing Officer fell in error in agreeing with assessee's transfer claim. We thus reiterate hon'ble Delhi high court's decision (supra) holding^ that it is not open for the CIT to pass a blanket remand order without dealing with merits of the issue such a backdrop of facts. We therefore hold that the CIT's remand directions to the Assessing Officer for framing a fresh assessment are not liable to be affirmed. We take into account our above detailed discussion to reverse the CIT's order under challenge qua the former issue of computation of capital gains arising from transfer of assessee's lands. The assessee succeeds in her corresponding former substantive ground (s). f The Hon'ble ITAT in its order has clearly held that the assessee had transferred her land to the vendee conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Starch products of ₹ 13,12,315/-, Shri Ambica Dye Chem of ₹ 13,90,515/- and binding cloth of ₹ 40,833/-, which were also reflected in the books of accounts. However, the ld.AO did not accept the explanation of the assessee. He observed that the assessee has claimed purchases separately, and there was no conclusive evidence to prove purchase expenditure. He accordingly made addition to this effect. Matter went in appeal before the ld.CIT, who allowed the claim of the assessee. Aggrieved Revenue is before the Tribunal. 7. Before us, both the parties supported orders of respective authorities, and reiterated submissions made before the lower authorities. 8. After having heard both the parties and considering material available on record, we do not find any 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. The AO simply ignored all these details, and w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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