Natverbhai C.Patel, Baroda V. The Income tax Officer,Ward-2(2), Baroda

ITA 1401/AHD/2012

• Counselvise Citation: 140120514 RSA 2012
• Duration Of Justice: 3 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 10-08-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 27-06-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D V SINGH
• Assessee Lawyers: M J SHAH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH AHMEDABAD , BEFORE SHRI G. D. AG RAWAL, VICE PRESIDEN T, AND SHRI S. S. GODAR A, JUDICIAL MEMBER . ITA. NO. 1 401 /AHD/2012 (ASSESSMEN T YEAR:200 6 - 0 7 ) NATVERBHAI C PATEL AT & POST PADAMLA, BARODA - 391350 APPELLANT VS. I NCOME T AX O FFICER , WARD - 2 ( 2 ), AAYAKAR BHAVAN, ALKAPURI, BARODA - 3970007 RESPONDENT PAN: A CXPP5120B / BY ASSESSEE : SHRI M. J. SHAH, A.R. / BY REVENUE : SHRI D. V. SINGH, SR. D.R. / DATE OF HEARING : 10 .0 8 .2015 / DATE OF PRONOUNCEMENT : 20 . 0 8 .2015 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 20 0 6 - 0 7 , ARISE S FROM ORDER OF THE CIT(APPEALS) - I I I , BARODA , DATED 13/04/2012 PASSED IN APPEAL N O. CAB/III - 292/09 - 10 , IN ITA NO. 140 1 /AHD/20 12 (NATVERBHAI C PATEL VS. ITO) A.Y. 200 6 - 0 7 - 2 - PROCEEDINGS U/S.143(3) OF THE INCOME TAX ACT, 1961, HEREAFTER THE ACT . 2. THE ASSESSEES SOLE SUBSTANTIVE GROUND RA ISED IN THE APPEAL CHALLENGES ACTION OF BOTH THE LOWER AUTHORITIES IN RESTRICTING HIS AGRICULTURAL INCOME OF RS. 5,69,975/ - TO THAT OF RS.3,54,448/ - ; THEREBY DISALLOWING/ TREATING THE DIFFERENTIAL SUM OF RS.2,15,527/ - UNDER THE HEAD OTHER SOURCES. THE AS SESSEE OWNS AGRICULTURAL LAND MEASURING 7.72 HECT A R E S AT PADMALA, D IST RICT BARODA. HE DECLARED TOBACCO PRODUCTION WEIGHING 24 434.5 KG. TO HAVE BEEN SOLD IN THE MARKET. NECESSARY REVENUE RECORD FORM 7/12 AND 8A IN THIS REGARD WERE PRODUCED. THE ASSESSING OFFICER IN SCRUTINY NOTICED AS PER HECT A R E TOBACCO YIELD @ 3165 KG. INSTEAD OF THAT TAKEN IN THE EARLIER YEARS TO BE 2225 KG. HE FRAMED A REGULAR ASSESSMENT ON 19.12.2008 REJECTING ASSESSEES EXPLANATION IN SUPPORT OF THE ABOVE STATED QUANTITY OF TOBACCO BEING SOLD . A ND HELD THAT AS PER THE DATA PUBLISHED BY DIRECTOR OF AGRICULTURE, THE SAME WAS MUCH EXAGGERATED AS COMPARE TO THE RELEVANT FIGURE TAKEN THEREIN @ 2225 KG PER HECT A R E . THE ASSESSEES EXPLANATION QUOTING THIS AGRICULTURE VOCATION TO BE BASED ON WEATHER ELEMENTS AND FERTILITY OF LAND WITH IMPROVED SEED QUALITY ETC. STOOD DECLINED. THE ASSESSING OFFICER ACCORDINGLY COMPUTED THE IMPUGNED DISALLOWANCE @ 940KG PER HECT A R E I.E. 3165 KG PER HECTA R E 2225 KG AND ARRIVED AT THE IMPUGNED FIGURE OF RS .2,15,527/ - AND TREATED IT AS INCOME FROM OTHER SOURCES. ITA NO. 140 1 /AHD/20 12 (NATVERBHAI C PATEL VS. ITO) A.Y. 200 6 - 0 7 - 3 - 3. THE CIT(A) HAS UPHELD THE ASSESSING OFFICERS ACTION AS UNDER: 4.2 I HAVE CONSIDERED THE SUBMISSIONS OF THE APPELLANT AND THE CONTENTIONS OF THE A.O. IT IS SEEN THAT THE A.O. HAS ADOPTED THE VA LUE OF PRODUCTION OF TOBACCO PER HECTOR @ 2225 KGS. P ER HECTOR ON THE BASIS OF DECISION OF HONBLE ITAT, AHMEDABAD IN THE CASE OF FATIMABEN I. VORA VS. DCIT & OTHERS IN ITA NO. 1662, 1772, 1773/AHD/2004 DATED 29.11.2004. IT IS ALSO SEEN THAT AS PER DATA P UBLISHED BY DIRECTOR OF AGRICULTURE, GANDHINAGAR, AVERAGE PRODUCTION FOR A.Y. 2004 - 05 WAS 1200 KGS. P ER HECTOR, WHILE THE A.O. HAS ADOPTED THE RATE OF 2225 KGS. P ER HECTOR FOR THE A.Y. 2006 - 07. UNDER SUCH CIRCUMSTANCES, THE ACTION OF THE A.O. IS CORRECT AN D THE SAME IS UPHELD. MOREOVER, IN THE ORDER OF CIT(A) IN THE CASE OF APPELLANTS WIFE, THE ENTIRE AGRICULTURE INCOME WAS HELD TO BE NON - AGRICULTURAL INCOME AND THE ISSUE OF AVERAGE PRODUCTION RATE OF TOBACCO PER HECTOR WAS NOT AT ALL INVOLVED. HENCE, TH IS DECISION IS NOT RELEVANT FOR THE CURRENT APPEAL. AS A RESULT OF APPEAL, THIS GROUND OF APPEAL IS DISMISSED. 4. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE CASE FILE. WE MAKE IT CLEAR AT THE OUTSET THAT THE PRESENT IS A CASE OF ESTIMATION OF AGRICULTURAL PRODUCE ONLY WHEREIN THE ASSESSEE CLAIMS HIS TOBACCO YIELD IS 3165 KG PER HECT A R E AS AGAINST THE LOWER AUTHORITIES HOLDING THE SAME TO BE 2225 KG PER HECTA R E . THE ASSESSEE PRODUCES BEFORE US A COPY OF TRIBUNALS ORDER IN ITA NO.1083/AHD/2008 FOR A.Y. 2004 - 05 IN HIS WIFES CASE DECIDED ON 06.06.2008 REMANDING AN IDENTICAL ISSUE BACK TO THE CIT(A). HE STATES AT THE BAR THAT CONSEQUENTIAL ORDER IS YET TO BE PASSED. THE REVENUE DOES NOT DISPUTE THIS FACTUAL POSITION. IT HAS COME ON RECORD THAT THE AUTHORITIES BELOW HAVE BEEN MAINLY GUIDED BY DATA PUBLISHED BY THE STATE DIRECTOR, AGRICULTURE IN DETERMINING THE CROP YIELD IN QUESTION. THE SAME PERTAINS TO A.Y. 2004 - 05. WE ARE IN A.Y. 2006 - 07. IN THESE FACTS, WE FIND THAT A COORDINATE BENCH IN I TA NO. 50 9/AHD/2011 RAMESHBHAI F. PATEL HUF VS. ITO FOR VERY ITA NO. 140 1 /AHD/20 12 (NATVERBHAI C PATEL VS. ITO) A.Y. 200 6 - 0 7 - 4 - ASSESSMENT YEAR HAS DEALT WITH A CASE OF TOBACCO YIELD PERTAINING TO BARODA DISTRICT ITS ELF AND UPHOLDS AN IDENTICAL ADDITION @ 66% OF THAT MADE IN THE COURSE OF ASSESSMENT. BOTH PARTIES FAIL TO PO INT OUT ANY DISTINCTION ON FACTS. WE DRAW SUPPORT THERE FROM AND UPHOLD THE IMPUGNED ADDITION @ 66% OF THAT MADE BY THE LOWER AUTHORITIES IN THESE PECULIAR CIRCUMSTANCES. THE ASSESSING OFFICER IS DIRECTED TO PASS A CONSEQUENTIAL ORDER. 5. THIS ASSESSE ES APPEAL IS PARTLY ALLOWED. PRONOUNCED IN THE OPEN COURT ON THIS THE 20 TH DAY OF AUGUST , 201 5 . SD/ - SD/ - ( G. D. AGRAWAL ) ( S. S. GODARA ) VICE PRESIDENT JUDICIAL MEMBER AHMEDABAD: DATED 20 /0 8 /2015 TRUE COPY S.K.SINH A / COPY OF ORDER FORWARDED TO: - 1. / REVENUE 2. / ASSESSEE 3. / CONCERNED CIT 4. - / CIT (A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE. BY ORDER / , / ,