R.Krishnamoorthy, Erode V. ITO, Tiruppur

ITA 1375/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64443 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 11-10-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 21-06-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHAJI P JACOB IRS
• Assessee Lawyers: S SRIDHAR
• Section: 143(3); 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ITA NO.1375(MDS)/2012 ASSESSMENT YEAR : 2007-08 AND S.P. NO.88(MDS)/2012 (IN ITA NO.1375(MDS)/2012) SHRI R.KRISHNAMOORTHY, C/O SHANTHI FORTUNE INDIA PVT. LTD., PALLADAM-641 664. PAN ADWPK0624M. VS. THE INCOME-TAX OFFICER, WARD I(1), TIRUPUR. (APPELLANT/PETITIONER) (RESPONDENT) APPELLANT BY : SHRI S.SRIDHAR, AD VOCATE RESPONDENT BY : SHRI SHAJI P JACOB, IR S, ADDL.CIT DATE OF HEARING : 11 TH OCTOBER, 2012 DATE OF PRONOUNCEMENT : 11 TH OCTOBER, 2012 O R D E R PER DR.O.K.NARAYANAN, VICE PRESIDENT THIS APPEAL AND THE STAY PETITION ARE FILED BY TH E ASSESSEE. THEY RELATE TO THE ASSESSMENT YEAR 2007- 08. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISS IONER OF INCOME-TAX(APPEALS)-II AT COIMBATORE, PASSED ON 28- 3-2012 AND - - ITA 1375 & SP 88 OF 2012 2 ARISES OUT OF THE ASSESSMENT COMPLETED UNDER SECTIO N 143(3) OF THE INCOME-TAX ACT, 1961. 2. IN THE PRESENT CASE, THE ASSESSEE HAS DECLARED AN AGRICULTURAL INCOME OF ` 1,02,53,000/-. THE ASSESSING AUTHORITY ALLOWED THE SAID INCOME TO THE EXTENT OF ` 25.33 LAKHS. THE DIFFERENTIAL AMOUNT OF ` 77.20 LAKHS HAS BEEN TREATED AS INCOME FROM OTHER SOURCES. THE COMMISSIONER OF INCOME-TAX (APPEALS) HAS UPHELD THIS POSITION. AGGRIEVED BY THE ORDERS OF THE LOWER AUTHORITIES, THE ASSESSEE HAS COME IN SECOND APPEAL BEFORE US. 3. ON HEARING BOTH SIDES, WE FIND THAT THE AGRICUL TURAL INCOME DETERMINED IN THE HANDS OF THE ASSESSEE VARI ES FROM ASSESSMENT YEAR TO ASSESSMENT YEAR. FOR EXAMPLE, I N A SUBSEQUENT ASSESSMENT YEAR 2009-10 THE ASSESSING OF FICER HAS DETERMINED AN AGRICULTURAL INCOME OF ` 89,71,750/-. AT THE SAME TIME, FOR THE ASSESSMENT YEAR 2008-09 THE AGRICULTU RAL INCOME DETERMINED BY THE ASSESSING OFFICER IS ONLY ` 5 LAKHS. 4. THE EXTENT OF LAND IS ALMOST THE SAME FOR ALL T HE ASSESSMENT YEARS. THE DETAILS FURNISHED BY THE ASS ESSEE HIMSELF VARY WIDELY FOR THE ASSESSMENT YEARS. THE ESTIMATES MADE BY THE ASSESSING OFFICER ALSO ARE INCONSISTENT . IN THESE - - ITA 1375 & SP 88 OF 2012 3 CIRCUMSTANCES WE DO NOT THINK THAT DETERMINING THE AGRICULTURAL INCOME ON AN AD HOC BASIS MAY NOT BE USEFUL IN THE CASE OF THE ASSESSEE. THE ISSUE OF AGRICULTURAL INCOME IS LIKE LY TO ARISE IN MANY ASSESSMENT YEARS TO COME AND, THEREFORE, IT IS NECESSARY ON THE PART OF THE REVENUE TO STUDY THE CASE IN A V ERY DETAILED MANNER AND TO COME TO A REASONABLE FINDING IN A CON SISTENT WAY. THE GREAT UPS AND DOWNS OF AGRICULTURAL INCOME DETE RMINED IN DIFFERENT ASSESSMENT YEARS CANNOT BE ENDORSED AS SU CH. 5. THEREFORE, THE ISSUE OF AGRICULTURAL INCOME FOR THIS ASSESSMENT YEAR IS SET ASIDE AND THE ASSESSING OFFI CER IS DIRECTED TO RECOMPUTE THE AGRICULTURAL INCOME AFTER EXAMINING ALL THE DETAILS AND DOCUMENTS AND THE OTHER PARTICULARS PRODUCED BY THE ASSESSEE. IF REQUIRED, THE ASSESSING OFFICER M AY CONDUCT A PROPERTY INSPECTION TO ASSESS THE AGRICULTURAL INCO ME ON THE BASIS OF THE NATURE OF LAND AND THE CROPS CULTIVATE D. 6. SINCE THE APPEAL ITSELF STANDS DISPOSED OF, THE STAY PETITION FILED BY THE ASSESSEE HAS BECOME INFRUCTUO US. 7. IN RESULT, THE CASE IS REMANDED BACK TO THE ASSESSING OFFICER AND THE APPEAL FILED BY THE ASSES SEE IS TREATED - - ITA 1375 & SP 88 OF 2012 4 AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. THE ST AY PETITION FILED BY THE ASSESSEE STANDS DISMISSED AS INFRUCTUOUS. ORDER PRONOUNCED ON THURSDAY, THE 11 TH OF OCTOBER, 2012 AT CHENNAI. SD/- SD/- (CHALLA NAGENDRA PRASAD) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED, THE 11 TH OCTOBER, 2012. V.A.P. COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GF.