Sh. Lalit Kumar, Shimla V. ITO, Ward, Rampur

ITA 123/CHANDI/2023

AI Insights

The case revolves around an appeal by Shri Lalit Kumar against the order of the Commissioner of Income Tax (Appeals)/NFAC, Delhi, which pertained to the assessment year 2011-12. The primary issue was the addition of Rs. 2,50,000 to the assessee's income, which was considered as income from undisclosed sources by the lower authorities. The assessee had claimed agricultural income of Rs. 2,50,000, supported by documents like Jamabandi and Kisan Pass Book. However, the Assessing Officer denied the claim on the basis that the land was owned by the assessee's father, Shri Diwan Chand, and not by the assessee himself. The Tribunal, after considering the arguments and evidence presented, ruled in favor of the assessee, emphasizing that ownership of the land does not necessarily preclude the person who cultivates it from claiming the income derived from it.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127544 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 28-05-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 02-03-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Income from undisclosed sources

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ “एकल” च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “SMC” CHANDIGARH ी संजय गग , या यक सद य BEFORE: SH. SANJAY GARG, JUDICIAL MEMBER आयकर अपील सं./ ITA No.123/CHD/2023 नधा रण वष / Assessment Year : 2011-12 Shri Lalit Kumar, V & PO – Khalgar, Tehsil – Rohroo. बनाम The ITO, Rampur Bushahr, Distt. Shimla. थायी लेखा सं./PAN NO: BBPPK1176G अपीलाथ /Appellant यथ /Respondent नधा रती क! ओर से/Assessee by : Shri Vishal Mohan, Sr. Advocate with Shri Aditya Sood, Advocate राज व क! ओर से/ Revenue by : Smt. Amanpreet Kaur, Sr.DR स ु नवाई क! तार&ख/Date of Hearing : 29.05.2023 उदघोषणा क! तार&ख/Date of Pronouncement : 30.05.2023 आदेश/ORDER The present appeal has been preferred by the assessee against the order dated 31.01.2023 of the Commissioner of Income Tax (Appeals)/NFAC, Delhi [in short ‘CIT(A)’] pertaining to 2011-12 assessment year. 2. The sole issue raised by the assessee in this appeal is relating to addition made by the lower authorities of Rs.2,50,000/- by treating the agriculture income shown by the assessee as income from undisclosed sources. ITA-123/CHD/2023 A.Y. 2011-12 Page 2 of 3 3. The brief facts are that the assessee during the year claimed agriculture income of Rs.2,50,000/-. When asked to prove the aforesaid agriculture income, the assessee submitted the necessary documents such as copy of Jamabandi, Kisan Pass Book and other documents. However, the aforesaid claim of agriculture income has been denied solely on the ground that the land in question was standing in the name of the father of the assessee namely Shri Diwan Chand. The Assessing Officer (in short ‘the AO’) observed that the agriculture income could have been assessed in the name of the owner of the land and not in the name of the assessee. 4. The ld. CIT(A) confirmed the addition so made by the AO. 5. The ld. Counsel for the assessee has submitted that, merely because the land was standing in the name of the father of the assessee, that does not mean that the assessee did not have the aforesaid agriculture income. That it is not necessary that for claiming agriculture income, land must be in the name of the agriculturist. Even the land can be taken on lease also. He has further submitted that in this case the land was standing in the name of the father of the assessee. The father of the assessee has not booked any extra agriculture income. The assessee tilled the land and got the agriculture income. The agriculture property and cultivation thereupon has not been denied. ITA-123/CHD/2023 A.Y. 2011-12 Page 3 of 3 6. Considering the above submissions of the ld. Counsel for the assessee, I do not find justification on the part of the lower authorities in making the impugned addition and same is, accordingly, ordered to be deleted. 7. In the result, the appeal of the assessee stands allowed. Order pronounced on 30 th May, 2023. Sd/- ( संजय गग ) (SANJAY GARG ) या यक सद य/ Judicial Member “Poonam” आदेश क! त,ल-प अ.े-षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकर आय ु /त/ CIT 4. -वभागीय त न2ध, आयकर अपील&य आ2धकरण, च4डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar