ARUMUGAM MALINGUPRABHU,METTUPALAYAM V. ITO, NON CORPORATE WARD 3(1), , COIMBATORE

ITA 2946/CHNY/2024

AI Insights

The case involves Shri Arumugam Malinguprabhu, an agriculturist, who appealed against the order of the Commissioner of Income Tax (Appeals) which partially allowed the addition of Rs.10,96,581 as income from other sources for the Assessment Year 2018-19. The appellant had reported a significant increase in agricultural income due to the cultivation of banana plants, which was substantiated by detailed submissions regarding the land and crops. The Tribunal found merit in the appellant's arguments and adjusted the income assessment accordingly, also rejecting the applicability of Section 115BBE.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396447 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SAMANTHA MULLAMUDI
• Assessee Lawyers: GIRISH KUMAR; ESTIMATING ADDITION OF

Judgement Text

" आयकर अपीलीय अिधकरण, ‘ए’ \u000fा यपीठ, चे\u0014ई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘A’ BENCH, CHENNAI \u0016ी मनु क ुमा र िग\u001bर ,\u000fा ियक सद एवं \u0005ी अिमता भ शु#ा , लेखा सद यक े सम\u0011 BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकरअपीलसं./I.T.A.No.2946/Chny/2024 (िनधा\u0005रण वष\u0005 / Assessment Year: 2018-19) Shri Arumugam Malinguprabhu, #88/45(A-1) Venkatasamy Road, Near Badrappa Kalyanamandapam Bungalowmedu, Mettupalayam-641 301. Vs Income Tax Officer, Non-Corporate Ward-3(1), Chennai. PAN : ASVPM-7266-R (अपीलाथ\u000f/Appellant) (\u0010\u0011यथ\u000f/Respondent) अपीलाथ\u000fक\u0014ओरसे/ Appellant by : Mr. Girish Kumar Advocate \u0010\u0011यथ\u000fक\u0014ओरसे/Respondent by : Mrs.Samantha Mullamudi, Addl. CIT सुनवाईक\bतारीख/Date of hearing : 26.03.2025 घोषणाक\bतारीख /Date of Pronouncement : 28.05.2025 आदेश आदेश आदेश आदेश / O R D E R PER MANU KUMAR GIRI, JM: The captioned appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals)(NFAC) Delhi [CIT(A)] dated 03.10.2024 for Assessment Year 2018-19. 2. Brief facts are as under: The assessee is an agriculturist and is not doing any activities other than agricultural activities and has been filing return of income for all the assessment years offering agricultural income. During the assessment year under consideration, the appellant filed his return of income offering agricultural income of Rs.56,08,750/-. The assessee also reported interest income at Rs.14,566/. The case of 2 ITA No. 2946 /Chny/2024 the assessee was selected for scrutiny to verify the issue of \"Large agricultural income compared to total income\" and in this regard, the assessee was issued notices regarding the agricultural income earned, for which the assessee had filed detailed submissions establishing the activities and crops cultivated by the appellant for earning the agricultural income. The Assessing officer (‘AO’ in short) however, proceeded to estimate the addition at Rs.16,85,125/-, being the difference in agricultural income from the AY 2017-18 (Rs.39,23,625/-) and AY 2018-19 (Rs.56,08,750/). 3. Aggrieved, the assessee challenged the assessment order before the CIT(A). The CIT(A) partially allowed the appeal by estimating addition of Rs.10,96,581/- as income from other sources of the appellant. He also further held that provisions of section 115BBE are not applicable in this case. Now, the assessee is in appeal before us. 4. The learned counsel for the assessee submitted that the increase in agricultural income is due to the increase in banana plants as intercrop due to huge demand and increase in market price for bananas. He further stated that the break-up of plants along with the details of the land where the intercrop was planted was also submitted before the lower authorities to substantiate the 3 ITA No. 2946 /Chny/2024 submissions of the (refer Page 31 to 34 of the Paper book). The ld. Counsel further submitted that during the first appellate proceedings, the assessee vide his written submissions dated 15.02.2023 (Page 239 of the paper book) in Para 4 and 5 submitted the entire details of land and crops contributing to the agricultural income earned by the appellant. The ld. Counsel furthermore submitted that the assessee had also placed on record in Para 7 of the submissions made before First Appellate Authority that under similar market situation/ intercrop being a cash crop/banana during the AY 2020-21, the assessee had earned an income of Rs.52,02,865/- which agricultural income earned by the appellant was also subjected to assessment and accepted by the department. 5. Per contra, the ld. DR, Addl. CIT relied upon the order of the CIT(A) and pleaded for the dismissal of the appeal. 6. We have heard rival submissions and perused records. We find that the CIT(A) while deciding the appeal filed by the appellant had granted partial relief to the appellant by estimating addition of Rs.10,96,581/- as income from other sources of the Appellant without taking into account to section 115BBE of the Act (Para 6.3 of the CIT(A) Order) and allowed the agricultural income of Rs.41,06,284/-. We have gone through the entire conspectus of 4 ITA No. 2946 /Chny/2024 matter and cut short the dispute inter se, estimating the agricultural income on par with the agricultural income of AY 2020-21 (Rs.52,02,865/-) is justified. To bring quietus to the present proceedings, we direct the AO to take income at Rs.4,05,885/- under the head income from other sources under normal provisions of the Act. We also held that Section 115BBE of the Act is not applicable in this case. 7. In result, appeal of the assessee is partly allowed. Order pronounced in the open court on 28th May, 2025 Sd/- Sd/- (अिमताभ शु#ा) ( मनु क ुमार िग\u001bर) ( Amitabh Shukla ) ( Manu Kumar Giri) लेखा लेखा लेखा लेखा सद\u0003य सद\u0003य सद\u0003य सद\u0003य / Accountant Member \u000fाियक सद / Judicial Member चे\u0019ई/Chennai, \u001bदनांक/Date: 28.05.2025 DS आदेश क\u0007 \bितिलिप अ\u000eेिषत/Copy to: 1.Appellant 2.Respondent 3. आयकर आयु\u0013/CIT Chennai/Madurai/Coimbatore 4. िवभागीय \bितिनिध/DR 5. गाड फाईल/GF. "