IN INCOME-TAX APPELLATE TRIBUNAL BENCH, CHENNAI Before Shri Duvvuru RL Reddy, Judicial Member & Shri S. Jayaraman, Accountant Member I.T.A.No.2724/Chny/2018 /Assessment Year :2014-15 Assistant Commissioner of Shri M.G. Sekar, Income Tax, Non Corporate Circle 3, Vs. No. 6, Vishranti Apartments, 121, Mahatma Gandhi Road, Kasturi Estate, 3rd Street, Nungambakkam, Chennai 600 034. Poes Garden, Chennai 600 086. [PAN: AMLPS0449J] (Appellant) (Respondent) Appellant by Shri AR. V. Sreenivasan, JCIT Respondent by Shri S. Sridhar, Advocate Date of hearing 10.07.2019 Date of Pronouncement 10.09.2019 ORDER PER DUVVURU RL REDDY, JUDICIAL MEMBER: This appeal filed by Revenue is directed against order of ld. Commissioner of Income Tax (Appeals) 15, Chennai dated 21.06.2018 relevant to assessment year 2014-15. Revenue has challenged order of ld. CIT(A) in granting partial relief to assessee by restricting disallowance at 20% on claim of agricultural income and deleting disallowance of sundry creditors to tune of .2.27 crores on basis of fresh evidences/details produced by assessee without given 2 I.T.A. No.2724/M/18 opportunity to Assessing Officer as per Rule 46A of Income Tax Rule. 2. Brief facts of case are that assessee filed return of income for assessment year 2014-15 on 30.03.2016 declaring loss of .2,21,915/-. return filed by assessee was selected for scrutiny and notice under section 143(2) of Income Tax Act, 1961 [ Act in short] was duly served on assessee. Thereafter, notice under section 142(1) of Act dated 16.08.2016 and notice under section 142(1) of Act dated 01.11.2016 calling for various details were issued. Final show cause notice was also issued to assessee on 05.12.2016, but there was no reply from assessee. Since there was continuous non-cooperation from assessee in furnishing relevant details, Assessing Officer proceeded to conclude assessment under section 144 of Act after considering materials available on record and determined income of assessee at .2,64,63,568/- by making various additions. 3. assessee carried matter in appeal before ld. CIT(A) with regard to disallowance of agricultural income as well as disallowance under section 41(1) of Act. After considering various documents and submissions of assessee, ld. CIT(A) partly allowed appeal filed by assessee, against which, Revenue is in appeal before Tribunal. 3 I.T.A. No.2724/M/18 4. We have heard both sides, perused materials available on record and gone through orders of authorities below. Since assessee has not responded to any of notices issued by Assessing Officer, best judgement assessment was passed under section 144 of Act. Against disallowance of agricultural income, after considering various documents furnished by assessee, such as, sale deed for agricultural lands held by assessee, patta, chitta, adangal, VAO s certificate with regard to agricultural yield and returns of income of various earlier assessment years, ld. CIT(A) restricted disallowance to 20% of agricultural income declared by assessee, which is in violation of Rule 46A of Income Tax Rules. Similarly, with regard to disallowance of sundry creditors, since assessee failed to provide any substantial proofs/evidences, sundry creditors of .2,27,55,624/- was disallowed under section 41(1) of Act and added as business income. After considering submissions of assessee, ld. CIT(A) deleted disallowance. However, while doing so, we find that ld. CIT(A) has not obtained any remand report from Assessing Officer on fresh materials taken into consideration, which is in violation of Rule 46A of Income Tax Rules. In view of above, we set aside order of ld. CIT(A) and remit matters to file of Assessing Officer to examine and decide both issues afresh in accordance with law after 4 I.T.A. No.2724/M/18 allowing opportunity of being heard to assessee. assessee is also directed to furnish all material evidence and explanation for deciding issues. 5. In result, appeal filed by Revenue is allowed for statistical purposes. Order pronounced on 10th September, 2019 at Chennai. Sd/- Sd/- (S. JAYARAMAN) (DUVVURU RL REDDY) ACCOUNTANT MEMBER JUDICIAL MEMBER Chennai, Dated, 10.09.2019 Vm/- Copy to 1. Appellant, 2. Respondent, 3. CIT(A), 4. CIT, 5. DR & 6. GF. Assistant Commissioner of Income-tax, Non Corporate Circle-3, Chennai v. M.G. Sekar