S.Indirani, CHENNAI V. ITO, Erode

ITA 1013/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7926 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 14-09-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 18-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAL
• Section: 143(3); 148

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . , ' # . $ , & ' BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICI AL MEMBER ./ I.T.A.NOS.1013 & 1014/MDS/2016 ( / ASSESSMENT YEARS: 2009-10 & 2010-11) SMT. S.INDIRANI, 151, GOUNDENPUR CHETTIAR THOTTAM, ORICHERI POST, ERODE. VS THE INCOME TAX OFFICER, WARD-2(5), ERODE. PAN: AARPI9858H ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR.SAROJ KUMAR PARIDA, ADVOCATE /RESPONDENT BY : MR. SUPRIYO PAL, JCIT /DATE OF HEARING : 14 TH SEPTEMBER, 2016 /DATE OF PRONOUNCEMENT : 30 TH NOVEMBER, 2016 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THESE TWO APPEALS ARE FILED BY THE ASSESSEE AGGRIEV ED BY THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-6, CHENNAI DATED 15.03.2016 IN ITA NOS.89 & 90/15-16 PASSED UNDER SECTION 143(3) R.W.S. 147 & 2 50(6) OF THE ACT. THE LEARNED COMMISSIONER OF INCOME TAX (A PPEALS) HAS PASSED A CONSOLIDATED ORDER FOR THE ASSESSMENT YEARS 2009-10, 2010-11 AND 2011-12 AND THE ASSESSEE IS IN APPEAL BEFORE US FOR THE ASSESSMENT YEARS 2009-10 & 2010-1 1. 2 ITA NOS.1013 & 1014/MDS/2016 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN HER APPEALS, HOWEVER, THE CRUX OF THE COMMON ISSUE IS T HAT:- THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN ARRIVING AT AD-HOC MEDIAN PRICE AGAINST THE ACTUAL SALE PRICE WITHOUT APPRECIATING THE FACTS OF THE CASE. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A N INDIVIDUAL FILED HER RETURNS OF INCOME FOR THE ASSE SSMENT YEARS 2009-10 & 2010-11 DECLARING TOTAL INCOME OF ` 1,83,900/- AND ` 1,95,480/- AND NET AGRICULTURAL INCOME OF ` 12,45,000/- AND ` 23,75,000/- RESPECTIVELY. THE LEARNED ASSESSING OFFICER ISSUED NOTICE TO THE ASSESSEE UND ER SECTION 148 OF THE ACT TO ASCERTAIN THE GENUINENESS OF THE EXORBITANT AGRICULTURAL INCOME RETURNED BY HER. ON ENQUIRY AND THE REPORT FURNISHED BY THE INSPECTOR OF THE DE PARTMENT DATED 07.03.2015, IT WAS ASCERTAINED BY THE LEARNED ASSESSING OFFICER THAT THE ASSESSEE HAS LAND HOLDIN GS IN JABAI VILLAGE OF 14.83 ACRES, AND 11.42 ACRES IN OR ICHERI VILLAGE, WHEREIN THE ASSESSEE HAD PLANTATION OF AB OUT 1731 COCONUT TREES OUT OF WHICH 1724 TREES ARE GIVING YI ELD. SINCE THE ASSESSEE HAS NOT FURNISHED ANY FURTHER DETAILS WITH REGARD 3 ITA NOS.1013 & 1014/MDS/2016 TO YIELD OF COCONUT AND THE RATE OF COCONUT SOLD DU RING THE RELEVANT ASSESSMENT YEARS FROM HER FARM, THE LEARNE D ASSESSING OFFICER OBTAINED THE RATE OF COCONUT FROM THE ASSISTANT DIRECTOR (AGRI), BHAVANI DURING THE PERIO D UNDER CONSIDERATION AND ESTIMATED THE AGRICULTURAL INCOM E FOR THE ASSESSMENT YEARS 2009-10 & 2010-11WORKED OUT AS UND ER:- AGRI LAND SITUATED AT VILLAGE NAME NO. OF COCONUT TREES YIELDING CAPACITY PER COCONUT TREE AS PER AGRI DEPTT. APPROXIMATE TOTAL COCONUTS YIELDING AVERAGE RATE IN ERODE DIST. PER COCONUT AS PER AGRI.DEPTT. SALE VALUE ORICHERI VILLAGE 800 207 / 217 YIELDING CAPACITY AS REDUCED BY 5% FOR EVERY YEAR FROM 264 1,65,600 / 1,73,600 ` 5.00 8,28,000 / 8,68,000 JAMBAI VILLAGE 924 225 / 235 YIELDING CAPACITY AS REDUCED BY 5% FOR EVERY YEAR FROM 288 2,07,900 / 2,17,140 ` 5.00 10,39,500/ 10,85,700 TOTAL TO TOTAL 18,67,500 / 19,53,700 4. THUS, THE LEARNED ASSESSING OFFICER ARRIVED AT T HE ALLOWABLE AGRICULTURAL INCOME OF THE ASSESSEE AT RS.18,67,500/- AND RS. 19,53,700/- AS AGAINST THE AGRICULTURAL INCOME CLAIMED BY THE ASSESSEE OF 4 ITA NOS.1013 & 1014/MDS/2016 RS.24,33,900/- AND RS.32,20,114/- FOR THE ASSESSMEN T YEARS 2009-10 & 2010-11 RESPECTIVELY. ACCORDINGLY, THE LE ARNED ASSESSING OFFICER MADE AN ADDITION OF RS.5,66,400/- AND RS.12,66,414/- FOR THE ASSESSMENT YEARS 2009-10 & 2 010-11 RESPECTIVELY. 5. ON APPEAL, THE LEARNED COMMISSIONER OF INCOME TA X (APPEALS),ESTIMATED THE YIELD OF COCONUT FOR THE A SSESSMENT YEARS 2008-09, 2009-10 & 2010-11 AND THE RATE TO BE ADOPTED AS FOLLOWS:- YIELD:- ASSESSMENT YEAR AGE YIELD ORICHERI YIELD JAMBAI 2009-10 8 238 260 2010-11 9 251 274 2011-12 10 264 288 RATE:- ASSESSMENT YEAR RATE PER COCONUT ADOPTED BY ASSESSING OFFICER RATE PER COCONUT MODIFIED OR FIXED BY COMMISSIONER OF INCOME TAX (APPEALS) 2009-10 RS.5/- RS.5/- 2010-11 RS.5/- RS.6/- 2011-12 RS.8/- RS.8/- 6. BEFORE US, THE LEARNED AUTHORIZED REPRESENTATIVE SUBMITTED THAT FOR THE RELEVANT TWO ASSESSMENT YEAR S A FAIR ESTIMATE MAY BE ADOPTED BY THE BENCH IN ITS WISDOM WHILE AS 5 ITA NOS.1013 & 1014/MDS/2016 ON THE OTHER HAND, THE LEARNED DEPARTMENTAL REPRESE NTATIVE ARGUED IN SUPPORT OF THE ORDERS OF THE LEARNED COMM ISSIONER OF INCOME TAX (APPEALS). 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y PERUSED THE MATERIALS ON RECORD. FROM THE FACTS OF THE CASE, IT IS APPARENT THAT THE ASSESSEE HAS NOT APPEALED A GAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS) FOR THE ASSESSMENT YEAR 2011-12 WITH REGARD TO THE YIELD AND ALSO RATE OF COCONUTS SOLD. CONSIDERING THE THREE A SSESSMENT YEARS 2009-10 TO 2011-12, WE ARE OF THE CONSIDERED VIEW THAT THERE WOULD NOT BE MUCH VARIATION IN THE RATE OF CO CONUTS CONSIDERING THE GENERAL MARKET TREND DURING THAT PE RIOD. THE YIELDS OF COCONUT ALSO DO NOT MUCH VARY ONCE THE CO CONUT PLANTATIONS ARE FULLY GROWN IE., APPROXIMATELY SEVE N YEARS. IN THE CASE OF THE ASSESSEE THE COCONUT TREES ARE MORE THAN SEVEN YEARS OLD. FURTHER THE ESTIMATE OF THE AGRICU LTURAL DEPARTMENT OF THE STATE GOVERNMENT IS ALSO NOT DISP UTED BY THE LEARNED ASSESSING OFFICER WITH ANY COGENT REAS ONS. IN THIS SITUATION, WE FIND IT APPROPRIATE TO ADOPT THE YIELD AND RATE OF COCONUT ACCEPTED BY THE LEARNED COMMISSIONER OF INCOME 6 ITA NOS.1013 & 1014/MDS/2016 TAX (APPEALS) FOR THE ASSESSMENT YEAR 2011-12, FOR THE ASSESSMENT YEAR 2009-10 & 2010-11 ALSO. WHEN THE ESTIMATION OF AGRICULTURAL INCOME IS ADAPTED IN SUC H MANNER THE INCOME DECLARED BY THE ASSESSEE WOULD BE LESSER THAN WHAT IS ACTUALLY CLAIMED BY HER. THEREFORE WE HEREB Y DIRECT THE LEARNED ASSESSING OFFICER TO DELETE THE ADDITIO N MADE FOR RS.RS.5,66,400/- AND RS.12,66,414/- FOR THE ASSESSM ENT YEARS 2009-10 & 2010-11 RESPECTIVELY. 8. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE A RE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 30 TH NOVEMBER , 2016 SD/- SD/- ( ' # . $ ) ( . ) ( DUVVURU RL REDDY ) ( A. MOHAN ALANKAMONY ) # % / JUDICIAL MEMBER % / ACCOUNTANT MEMBER # /CHENNAI, ( /DATED 30 TH NOVEMBER, 2016 SOMU *+ ,+ /COPY TO: 1. APPELLANT 2. RESPONDENT 3. - () /CIT(A) 4. - /CIT 5. + 1 /DR 6. /GF