P.Raghunathan, CHENNAI V. ACIT, Trichy

ITA 1093/CHNY/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73682 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2014
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 23-01-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 22-05-2013
• Court: TRIBUNAL
• Department Lawyers: B JEHA
• Assessee Lawyers: A S SRIRAMAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . , . !' , # $ BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER ./ I.T.A.NOS. 1093 & 1094/MDS./2013 ( / ASSESSMENT YEARS : 2009-10 & 2010-11) SHRI P.RAGHUNATHAN, NO.27,NEW STREET,TARANALLUR, TIRUCHIRAPALLI-8 VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE II, TIRUCHIRAPALI. PAN AFKPR 0402 C ( %& / APPELLANT ) ( '(%& / RESPONDENT ) / APPELLANT BY : SHRI A.S.SRIRAMAN,ADVOCATE / RESPONDENT BY : SHRI B.JEHA, CIT,D.R. / DATE OF HEARING : 23.01.2014 ! /DATE OF PRONOUNCEMENT : 19.02.2014 ) / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THESE TWO APPEALS ARE FILED BY THE ASSESSEE, AGGR IEVED BY THE ORDERS OF THE LEARNED COMMISSIONER OF INCOME TAX(A) , TIRUCHIRAPALLI, ITA NO.1093 & 1094/MDS/13 SHRI P.RAGHUNATHAN 2 DATED 07.01.2013 IN ITA NO.361/11-12, FOR THE A.Y. 2009-10 AND ITA NO.360/11-12, FOR THE A.Y. 2010-11 PASSED U/S. 14 3 (3 ) READ WITH SEC.250 OF THE ACT. 2. THE ASSESSEE HAS RAISED SEVEN ELABORATE GROUN DS IN HIS APPEALS FOR BOTH THE ASSESSMENT YEARS, HOWEVER THE CRUX OF THE ISSUE CENTERS AROUND GROUND NO.2, WHICH ARE IDENTICAL IN THESE APPEALS AND THEY ARE REPRODUCED HEREIN BELOW:- 2. THE LD. CIT (A) HAD ERRED IN PARTLY SUSTAINING T HE ADDITION MADE UNDER THE HEAD INCOME FROM OTHER SOURCES TO THE EXTE NT OF ` .4,86,000/- FOR A.Y. 2009-10 & ` .6,17,000/- FOR A.Y.2010-11 BY REJECTING THE CLAIM OF THE ASSESSEE THAT THEY ARE AGRICULTURAL INCOME WITHOUT ASSIGNING PROPER REASONS AND JUSTIFICATION. 3. THE ASSESSEE IS AN INDIVIDUAL, DERIVING INCOME UNDER THE HEAD INCOME FROM OTHER SOURCE AND AGRICULTURAL INCOME , FILED HIS RETURN OF INCOME PURSUANT TO NOTICES U/S. 153C OF THE ACT FOR THE ASSESSMENT YEARS 2009-10 & 2010-11 ON 09.06.2011 & 15.06.2011 ADMITTING INCOME OF `. 2,03,420/- & `. 2,45,090/- RESPECTIVELY. THE ITA NO.1093 & 1094/MDS/13 SHRI P.RAGHUNATHAN 3 ASSESSEE HAD ALSO SHOWN AGRICULTURAL INCOME OF `. 7,50,000/- & `. 7,75,000/- FOR THE ASSESSMENT YEARS 2009-10 & 2010- 11 RESPECTIVELY. DURING THE COURSE OF ASSESSMENT PRO CEEDINGS, THE LD. ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAD NO T PRODUCED ANY EVIDENCE FOR THE SUDDEN RISE IN AGRICULTURAL INCOME FOR THE RELEVANT ASSESSMENT YEARS. THE LD. ASSESSING OFFICER FURTHE R OBSERVED THAT FOR EACH OF THE EARLIER PREVIOUS YEARS THE ASSESSEE HAD DECLARED AGRICULTURAL INCOME OF `. 1,50,000/-. THEREFORE, THE LD. ASSESSING OFFICER OPINED THAT THE AGRICULTURAL INCOME OF THE ASSESSEE FOR THE RELEVANT ASSESSMENT YEARS COULD NOT BE MORE THAN `. 1,50,000/-PER ANNUM. ACCORDINGLY, LD. ASSESSING OFFICER TREATED `. 6,00,000/- FOR THE ASSESSMENT YEAR 2009-10 & `. 6,25,000/- FOR THE ASSESSMENT YEAR 2010-11 AS INCOME FROM OTHER SOURCE OF THE A SSESSEE. 4. BEFORE THE LD. CIT(A), THE ASSESSEE PRODUCED THE DETAILS OF HIS LAND HOLDING OF 10 ACRES AND THE AMOUNT RECEIVED F ROM M/S.EID PARRY CO. LTD., BY CHEQUE FOR `. 3,77,053/- FOR THE ASSESSMENT YEAR 2009-10 AND `. 2,25,730/- FOR THE ASSESSMENT YEAR 2010-11 TOWARDS SALE OF SUGARCANE. FURTHER, THE ASSESSEE ALSO PROD UCED RECEIPTS ITA NO.1093 & 1094/MDS/13 SHRI P.RAGHUNATHAN 4 FROM PLANTAIN FRUIT MERCHANTS TOWARDS SALE OF BANAN AS FOR `. 6,69,500/- FOR THE ASSESSMENT YEAR 2009-10 & `. 9,05,000 FOR THE ASSESSMENT YEAR 2010-11. THE LD.CIT (A) ACCEPTED THE CONTENTION OF THE ASSESSEE WITH RESPECT TO THE SALE OF SUGARCA NE, SINCE THE SALE PROCEEDS WERE RECEIVED BY CHEQUE AND AFTER ADJUSTIN G 30% TOWARDS AGRICULTURAL EXPENSES, BROKERAGE ETC., TREATED THE BALANCE 70% OF THE SALE PROCEEDS AS AGRICULTURAL INCOME OF THE ASSESSE E, WHICH AMOUNTED TO `. 2,64,000/- FOR ASSESSMENT YEAR 2009-10 & `. 1,58,000/- FOR THE ASSESSMENT YEAR 2010-11. HOWEVE R, WITH RESPECT TO SALE OF BANANAS, THE LD.CIT (A) REJECTED THE CLA IM OF THE ASSESSEE, SINCE THERE WAS A POSSIBILITY OF THE SALE RECEIPTS OBTAINED FROM THE PLANTAIN FRUIT MERCHANTS TO BE MANIPULATED. 5. BEFORE US, THE LD. A.R. FORCIBLY SUBMITTED THAT, THE LD.CIT (A), WITHOUT EXAMINING THE PLANTAIN FRUIT MERCHANTS FROM WHOM RECEIPTS WERE OBTAINED FOR THE SALE OF BANANAS, HAD SIMPLY R EJECTED THE ARGUMENT OF THE ASSESSEE AND FAILED TO RECOGNIZE TH E AGRICULTURAL INCOME EARNED BY THE ASSESSEE, WHICH HAD RESULTED F ROM THE SALE OF BANANAS. THEREFORE, THE LD. A.R. SUBMITTED THAT TH E ISSUE MAY BE ITA NO.1093 & 1094/MDS/13 SHRI P.RAGHUNATHAN 5 CONSIDERED AND APPROPRIATE RELIEF MAY BE GRANTED TO THE ASSESSEE. LD. D.R STOUTLY OPPOSED THE SUBMISSIONS OF THE LD. A.R. AND RELIED UPON THE ORDER OF THE LD. LD. CIT (A). 6. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY PE RUSED THE MATERIALS AVAILABLE ON RECORD. FROM THE FACTS OF T HE CASE, IT IS APPARENT THAT THE LD.CIT (A) HAS SIMPLY REJECTED TH E CLAIM OF THE ASSESSEE FOR THE REASON THAT THE RECEIPTS FROM THE PLANTAIN FRUIT MERCHANTS HAD BEEN MANIPULATED. THIS ACTION OF THE LD.CIT (A) IS NOT JUSTIFIABLE. HE OUGHT TO HAVE EXERCISED SOME REASON ABLE INVESTIGATION OR REQUIRED THE ASSESSEE TO FURNISH SOME MORE INFOR MATION WITH RESPECT TO HIS ACTIVITIES IN THE AGRICULTURAL OPERA TIONS OR THE SALE OF AGRICULTURAL PRODUCE. CONSIDERING THE FACTS AND CIR CUMSTANCES OF THE CASE, WE ARE OF THE CONSIDERED VIEW THAT 50% OF THE TOTAL SALE PROCEEDS OF THE SALE OF BANANAS SHOULD BE TREATED A S EXPENDITURE AND BALANCED ALLOWED AS THE AGRICULTURAL INCOME OF THE ASSESSEE. LD. ASSESSING OFFICER IS DIRECTED TO MODIFY HIS ORDER A CCORDINGLY. ITA NO.1093 & 1094/MDS/13 SHRI P.RAGHUNATHAN 6 7. IN THE RESULT, THE APPEALS OF ASSESSEE ARE PARTL Y ALLOWED. ORDER PRONOUNCED ON 19 TH FEBRUARY, 2014 AT CHENNAI. SD/- SD/- (V. DURGA RAO) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 19 TH FEBRUARY, 2014. K S SUNDARAM. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE