Vinod Venkatesh Ramchandra Gouda Patil, Hyderabad V. Income Tax Officer, Ward-12(4), Hyderabad

ITA 1319/Hyd/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2027 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 11-03-2020
• Assessment Year: 2010-2011
• Appeal Filed On: 20-06-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Assessee Lawyers: M V ANIL KUMAR

Judgement Text

IN THE INCOME TAX A PPELLATE TRIBUNAL HYDERABAD BENCH SMC', HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO. 1319/HYD/2018 ASSESSMENT YEAR: 2010-11 VINOD VENKATESH RAMCHANDRA GOUDA PATIL, HYDERABAD. PAN ARZPP 2132L VS. INCOME-TAX OFFICER, WARD 12(4), HYDERABAD. A PPELLANT RESPONDENT ASSESSEE BY: S HRI M.V. ANIL KUMAR REVENUE BY: S HRI NILANJAN DEY DATE OF HEARING: 11 / 0 3 / 20 20 DATE OF PRONOUNCEMENT: 30 / 04 /20 20 O R D E R THIS IS ASSESSEES APPEAL FOR THE AY 2010-11 AGAINS T THE ORDER OF CIT(A) 1, HYDERABAD, DATED 25/11/20 16, 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A N INDIVIDUAL, FILED HIS RETURN OF INCOME FOR THE AY 2 010-11 ON 04/08/2010 DECLARING TOTAL INCOME OF RS. 2,17,660/- . THE RETURN OF INCOME WAS SELECTED FOR SCRUTINY UNDER CA SS AND DURING THE ASSESSMENT PROCEEDINGS U/S.143(3) OF THE ACT, THE AO OBSERVED THAT THE ASSESSEE HAD MADE CASH DEPOSIT S TO THE TUNE OF RS. 17,58,000/- INTO HIS ICICI SAVINGS BANK ACCOUNT AND WAS ASKED TO EXPLAIN THE SOURCE FOR THESE CASH DEPOSITS. THE ASSESSEE EXPLAINED THAT THE ENTIRE SUM OF RS.17 ,58,000/-, WHICH WAS DEPOSITED INTO THE BANK ACCOUNT WAS THE M ONEY I.T.A. NO. 1319/HYD/18 VINOD VENKATESH RAMCHANDRA GOUDA PATIL, HYD. 2 RECEIVED BY HIM TOWARDS THE SALE OF AGRICULTURAL LA ND AND ALSO LEASE AMOUNT FROM HIS TENANTS WHO WERE CARRYING ON THE AGRICULTURAL OPERATIONS FOR THE LAST 4 YEARS. HE S UBMITTED THAT SINCE THE TENANTS ONLY HAD PURCHASED THE LAND ALSO, THEY HAD PAID THE ENTIRE DUES ALONG WITH SALE CONSIDERATION . THE AO, HOWEVER, DID NOT ACCEPT THIS CONTENTION OF THE ASSE SSEE AND TREATED THE ENTIRE SUM OF RS. 17.58 LAKHS AS INCOME FROM HIS UNEXPLAINED SOURCES AND BROUGHT IT TO TAX. 3. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFO RE THE CIT(A), WHO CONFIRMED THE ORDER OF THE AO AND THE A SSESSEE IS IN SECOND APPEAL BEFORE THE TRIBUNAL BY RAISING THE FOLLOWING GROUNDS OF APPEAL: 1. THE CIT(A) AS WELL AS THE ASSESSING OFFICER ERRE D IN LAW AND FACTS OF THE CASE IN BRINGING TO TAX AGRICU LTURAL INCOME AND SALE OF AGRICULTURAL LANDS. 2. THE CIT (A) AS WELL AS THE ASSESSING OFFICER OUG HT TO HAVE APPRECIATED THE FACT THAT THE AGRICULTURAL LAN DS ARE SITUATED ABOUT 12KMS FROM THE NEAREST MUNICIPAL LIM ITS OF GADAG DISTRICT OF KAMATAKA, WITHOUT PROPER APPLICATION OF MIND OR BRINGING ON RECORD THAT THE LAND ARE SITUATED WITHIN 8KMS OF THE MUNICIPAL LIMITS, C OULD NOT HAVE TAXED THE SAME. 3. THE CIT(A) OUGHT TO HAVE APPRECIATED THE FACT TH AT THE ENTIRE DEPOSIT OF CASH IN BANK IS OUT OF AGRICU LTURAL INCOME AND SALE OF AGRICULTURAL LANDS WHICH ARE EXE MPT FROM TAX. 4. YOUR CIT(A) AS WELL AS THE APPELLANT SUBMITS THA T THE ASSESSING OFFICER OUGHT TO HAVE APPRECIATED THE EVIDENCE SUBMITTED AND ACCEPTED THE EXPLANATION THA T THE ENTIRE DEPOSIT IN ICICI BANK AMOUNTING TO RS. 17,53,000/- IS OUT OF EXEMPTED INCOME BY WAY OF AGRICULTURAL INCOME AND SALE OF AGRICULTURAL LANDS. I.T.A. NO. 1319/HYD/18 VINOD VENKATESH RAMCHANDRA GOUDA PATIL, HYD. 3 5. THE CIT(A) AS WELL AS THE ASSESSING OFFICER WITH OUT BRING ON RECORD ANY INFORMATION THAT THE SALE OF LA ND IS NOT AGRICULTURAL LANDS, OR THE LANDS ARE SITUATED W ITH IN 8KMS OF THE NEAREST MUNICIPAL LIMITS, OUGHT TO HAVE NOT TAXED THE SAME AS INCOME FROM UNEXPLAINED SOURCES. 6. ALTERNATIVELY, YOUR APPELLANT SUBMITS THAT THE C IT(A) AS WELL AS THE ASSESSING OFFICER HAVING NOT DISPUTE D THE FACT THAT YOUR APPELLANT IS HOLDING AGRICULTURAL LA NDS, CANNOT BRING THE AGRICULTURAL INCOME, RECEIVED DURI NG THE YEAR UNDER CONSIDERATION, TO TAX. 4. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THERE IS NO DOUBT THAT THE ASSESSEE WAS HOLDING AGRICULTURAL LAND AND THAT HE HAD GIVEN IT ON LEASE TO AGRICULTURISTS AND COPIES (INVOICES) OF THE AGRICULTURE PRODUCE WERE ALSO PRO DUCED BEFORE THE AO AND CIT(A). HE SUBMITTED THAT EVEN TH E SALE CONSIDERATION RECEIVED FOR SALE OF LAND HAS BEEN TR EATED AS INCOME/UNEXPLAINED SOURCES. HE FURTHER SUBMITTED TH AT AGRICULTURISTS HAD PAID THE LEASE AMOUNT, WHICH WAS DUE TO THE ASSESSEE FOR THE PAST 4 YEARS AND THE SAME SHOULD A LSO HAVE BEEN CONSIDERED AS EXPLAINED. 5. ON THE OTHER HAND, THE LD. DR SUPPORTED THE ORDE RS OF THE REVENUE AUTHORITIES. 6. HAVING REGARD TO THE RIVAL CONTENTIONS AND MATER IAL ON RECORD, I FIND THAT THERE IS NO DISPUTE THAT THE AS SESSEE HAS SOLD THE AGRICULTURAL LAND AND HAS RECEIVED THE CON SIDERATION OF RS. 9.8 LAKHS WHICH IS ALSO PART OF RS.17.58 LAK HS DEPOSITED I.T.A. NO. 1319/HYD/18 VINOD VENKATESH RAMCHANDRA GOUDA PATIL, HYD. 4 INTO THE BANK. I THEREFORE AGREE WITH THE CONTENTIO N OF THE ASSESSEE THAT THE SAID AMOUNT SHOULD HAVE BEEN ACCE PTED BY THE AO AND THE CIT(A) AS EXPLAINED SOURCE. WITH RE GARD TO THE BALANCE AMOUNT BEING THE LEASE AMOUNT DUE FOR T HE PAST FOUR YEARS, THE ASSESSEE HAS TO EXPLAIN WITH NECESS ARY EVIDENCE. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTE D THAT HE HAS ALL THE NECESSARY DETAILS TO EXPLAIN THESE DEPO SITS AS WELL. IN VIEW OF THE SAME, I DIRECT THE AO TO ACCEPT THE SALE OF CONSIDERATION OF RS. 9.8 LAKHS RECEIVED FOR SALE OF AGRICULTURAL LAND AS EXPLAINED SOURCE AND FOR THE BALANCE AMOUNT , THE ISSUE IS REMITTED TO FILE OF THE AO FOR DE-NOVO CON SIDERATION IN ACCORDANCE WITH LAW AFTER GIVING ASSESSEE A FAIR OP PORTUNITY OF HEARING. THE ASSESSEE IS DIRECTED TO COOPERATE WITH THE AO FOR SPEEDY DISPOSAL OF THE APPEAL. 6.1 AS REGARDS THE CONTENTION OF THE ASSESSEE THAT THE AGRICULTURAL LANDS ARE SITUATED BEYOND 12 KMS FROM THE MUNICIPAL LIMITS AND NOT EXIGIBLE TO TAX ALSO HAS T O BE VERIFIED BY THE AO. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 30-04-2020. SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 30 TH APRIL, 2020. KV I.T.A. NO. 1319/HYD/18 VINOD VENKATESH RAMCHANDRA GOUDA PATIL, HYD. 5 COPY FORWARDED TO: 1. SRI VINOD VENKATESH RAMCHANDRA GOUDA PATIL, C/O. M. ANANDAM & CO., CAS, 7A, SURYA TOWERS, SD ROAD, SCUN DERABAD 500 003. 2 . ITO, WARD 1 2 ( 4 ) , HYDERABAD 3 . CIT(A) - 1 HYDERABAD. 4. 5. PR. CIT - 1, HYDERABAD. THE DR, ITAT, HYDERABAD 6 . GUARD FILE