TMI Blog2006 (11) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... Dr. Rakesh Gupta with Jitender Saini for the respondent. JUDGMENT 1. The Revenue has filed these appeals against the order of the Income-tax Appellate Tribunal (Tribunal) deleting the agricultural income in the sum of ₹ 4,34,000 declared by Shri Pradeep Kumar Gupta and ₹ 4,55,700 declared by Shri Vijay Gupta, respectively. Both these assessees had also assailed the validity of the assumption of jurisdiction by the Assessing Officer under sections 147 and 148 of the Income-tax Act. 2. The case of the Revenue is that the Assessing Officer had received information from the Deputy Director of Income-tax (Investigation), Faridabad that while carrying out post-search enquiries relating to a third party, Shri Anan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to cross-examine Shri Anand Prakash, but this was declined on the ground that the statement of this person had been recorded by the Deputy Director of Income-tax (Investigation), Faridabad. Further, while the assessees do not deny that they have sold produce to M/s. Jai Trading Company and have submitted copies of the bills issued by the latter, they maintain that these sales were genuine. 4 . Having heard learned counsel for the parties at great length, we are of the view that the order of the Tribunal is unassailable. In this case, the assessment had not been completed under section 143(3) of the Income-tax Act. There are banking transactions between the assessees and Shri Anand Prakash and, therefore, initiation of reassessment proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of a third party in order to upset the return filed by an assessee. 5. This is where the failure of the Revenue to produce Shri Anand Prakash for cross-examination by the assessees, assumes fatal consequences. Reassessment proceedings have been initiated after several years of the acceptance of the return under section 143(1) of the Income-tax Act. The assessees have themselves relied on the banking transactions between themselves and Shri Anand Prakash ; secondly, on bills issued by them to Shri Anand Prakash, and on the unassailed payment of rent to Shri Mool Chand. It is true that the assessees' failure to produce Shri Kishan Chand had the consequence of not proving that the said person was tilling the land on their behalf. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, being Income-tax Appeal No. 798 of 2004, was dismissed as not pressed. Since the tax effect in those cases was less than ₹ 2,00,000 and, therefore, the appeal was not maintainable in terms of the Central Board of Direct Taxes Circular dated June 29, 2000. According to Dr. Rakesh Gupta, learned counsel for the assessees, the incidence of tax in the present cases also would be less than ₹ 2,00,000. He has further relied on the Circular dated October 24, 2005, whereby the monetary limit for the purposes of tax effect was increased from ₹ 2,00,000 to ₹ 4,00,000, with effect from October 31, 2005. We need not go into the question of the retrospective effect of the said circular since the amount of tax here in any eve ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
