Suhas Pandurang Kaulgud, Miraj V. Deputy Commissioner of Income-tax, Circle - 2, Sangli

ITA 1227/PUN/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3652 (ITAT-PUNE)
• Duration Of Justice: 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 17-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO.1227/PUN/2018 / ASSESSMENT YEAR : 2007-08 MR. SUHAS PANDURANG KAULGUD, 3884, MALEKARWADA, BRAMHINPURI, MIRAJ-416410 PAN : ABZPK9598F VS. DCIT, CIRCLE-2, SANGLI (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSE D BY THE CIT(A)-1, KOLHAPUR ON 02-05-2018 IN RELATION TO THE ASSESSMENT YEAR 2007-08. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION OF RS.1,60,352/- OUT OF AGRICULTURA L INCOME. APPELLANT BY SHRI C.H. NANIWADEKAR RESPONDENT BY SHRI ACHAL SHARMA DATE OF HEARING 19-02-2019 DATE OF PRONOUNCEMENT 20-02-2019 ITA NO.1227/PUN/2018 SUHAS PANDURANG KAULGUD 2 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSE E OFFERED AGRICULTURAL INCOME OF RS.2.00 LAKH IN HIS RETURN. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSE E WAS CALLED UPON TO SUBSTANTIATE SUCH AGRICULTURAL INCOME. THE ASSESSEE SUBMITTED THAT HE OWNED A LAND OF 1.63 H AT BEDA G. IN ADDITION, ANOTHER 1.64 H OF LAND WAS OWNED BY HIS MOTH ER ADJACENT TO THE LAND OF THE ASSESSEE. BOTH THE LANDS WERE CLAIMED TO HAVE BEEN CULTIVATED BY THE ASSESSEE AND THE NE T AGRICULTURAL INCOME OF RS.2.00 LAKH WAS EARNED FROM SUCH CULTIVATION. 4. AS REGARDS THE PROOF OF AGRICULTURAL PRODUCE, THE ASSE SSEE SUBMITTED COPY OF PASSBOOK OF HIS SON MR. CHAITANYA S. KAULGUD SHOWING RECEIPT OF RS.1,20,705/- AGAINST THE SUGARCANE SALE TO MAHANKALI S.S.S.K. LTD. DETAILS OF OTHER RECEIPTS WERE ALSO GIVEN. THE ASSESSING OFFICER MADE ADDITIO N OF RS.1,60,352/- BY REDUCING RS.1,20,705/-, BEING, THE AMOUNT RECEIVED IN THE NAME OF HIS SON FROM THE AGRICULTURAL INCOME SHOWN BY THE ASSESSEE AT RS.2.00 LAKH AND AFTER REDUCING HIS MOTHERS SHARE AT 50%. THE REMAINING 50% AT RS.39,648/- WAS REDUCED FROM THE AGRICULTURAL INCOME DECLARED BY THE ASSESS EE ITA NO.1227/PUN/2018 SUHAS PANDURANG KAULGUD 3 AT RS.2.00 LAKH. THIS LED TO THE MAKING OF AN ADDITION OF RS.1,60,352/-. THE LD. CIT(A) SUSTAINED THE ADDITION, AGA INST WHICH THE ASSESSEE HAS COME UP IN APPEAL BEFORE THE TRIB UNAL. 5. I HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE R ELEVANT MATERIAL ON RECORD. PAGE 5 OF THE PAPER BOOK IS A COPY O F SUBMISSION FILED BEFORE THE LD. CIT(A) IN WHICH IT HAS BEEN SHOWN THAT THE TOTAL AGRICULTURAL PRODUCE WAS SOLD FOR RS.3,19,541/- TO C.J. ROMAN DEALER AND MANGANGA S.S.S. K. IN TOTAL. THE AGRICULTURAL PRODUCE WAS NOT ONLY SUGARCANE BUT ALSO SIMLA CHILLI. THIS POSITION EMERGED FROM 7/12 EXTRACTS IN RESPECT OF LAND OWNED BY THE ASSESSEE AND HIS MOTHER. O NCE IT IS PROVED THAT THE ASSESSEE ALONG WITH HIS MOTHER EARNED G ROSS AGRICULTURAL INCOME OF RS.3,19,541/-, THE NET AGRICULTURAL INCOME AT RS.2.00 LAKH, CANNOT BE DENIED. THE AO HAS N OT ACCEPTED THE FACT OF THE ASSESSEES SON HAVING RECEIVED C HEQUE OF RS.1,20,705/- AGAINST THE AGRICULTURAL PRODUCE. HE ALSO SEPARATED 50% OF INCOME AS PERTAINING TO ASSESSEES MOTHE R. THE LD. AR SPECIFICALLY STATED BEFORE THE AUTHORITIES THAT NO CREDIT OF ANY SUCH AGRICULTURAL INCOME WAS CLAIMED EITHER BY HIS SON OR MOTHER, WHICH HAS NOT BEEN CONTROVERTED. IT WA S ITA NO.1227/PUN/2018 SUHAS PANDURANG KAULGUD 4 SIMPLY THAT CHEQUE FOR SALE OF AGRICULTURAL PRODUCE WAS RECEIVED IN THE NAME OF HIS SON. ONCE THE EXISTENCE OF AGRICULTURAL INCOME IS ESTABLISHED AND FURTHER ONLY THE ASSESSE E TOOK CREDIT FOR SUCH INCOME, IN MY CONSIDERED OPINION, THE AUTHORITIES BELOW SHOULD HAVE ACCEPTED SUCH EXPLANATION RATHER THAN MAKING AND SUSTAINING THE ADDITION. I, THEREFOR E, ORDER TO DELETE THE ADDITION. 6. IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH FEBRUARY, 2019 SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 20 TH FEBRUARY, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-1, KOLHAPUR 4. THE PR. CIT-1, KOLHAPUR 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.1227/PUN/2018 SUHAS PANDURANG KAULGUD 5 DATE 1. DRAFT DICTATED ON 19-02-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 20-02-2019 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *