Commissioner of Income Tax vs Evershine Agri Farms (P.) Ltd.

The matter has been called out twice but there is no appearance on behalf of the assessee despite service. After hearing learned counsel for the revenue, the following substantial question of law is framed for consideration:-

Whether the income tax Appellate Tribunal was correct in law in rejecting the request of the revenue for remanding the matter to the file of the Assessing Officer despite the fact in similar circumstances the Tribunal had remanded the issue to the file of the Assessing Officer in respect of the assessment year 1995-96?

The filing of paper book is dispensed with.

The case of the revenue is that the assessee had some income from undisclosed sources which he sought to pass off as agricultural income. This was in respect of the assessment year 1995-96.

A similar situation has arisen in respect of the assessment year 1996-97 and in that year, the income tax Appellate Tribunal, Delhi Bench? SMC-II? In ITA No. 1992/Del/2000 remanded the matter to the file of the Assessing Officer to make enquiries and verification of Khasra Khatauni and agricultural activities of the assessee from the concerned Land Revenue Officer and the local people. However, in the present case, the Tribunal accepted the contention of the assessee and held the income to be agricultural income.

The assessee then file a miscellaneous application before the Tribunal stating that in respect of the assessment year 1996-97, the matter had been remanded to the file of the Assessing Officer and, therefore, for the present assessment year, that is, 1995-96, the matter should also be remanded to the file if the Assessing Officer since the facts were absolutely the same. The tribunal rejected the miscellaneous application on the ground that the order passed in respect of the assessment year 1996-97 was not brought to the notice of the Tribunal and so there was no mistake apparent on the record. In respect of the prayer of the revenue to remanded the matter to the file of the Assessing Officer, the Tribunal rejected the request but did not give any reason.

We are of the view that the Tribunal was not justified in rejecting the request without giving any reason particularly when the facts were similar. Under the circumstances, we think that it would be appropriate to remand the matter to the file of the Assessing Officer for being adjudicated afresh in terms of the order passed by the income tax Appellate Tribunal in respect of the assessment year 1996-7.

We answer the substantial question of law in the negative and remanded the matter to the file of the Assessing Officer to adjudicate the issue afresh in terms of the direction given by the Tribunal in respect of the assessment year 1996-97. The appeal is disposed of.