M/s Prabhakar Bhargave, Guna V. I.T.O., Agra

ITA 149/AGR/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 89214 (ITAT-AGRA)
• Duration Of Justice: 2 year(s) 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 25-08-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 08-05-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: BELU SINHA

Judgement Text

I.T.A. NO. 149/AGRA/2013 ASSESSMENT YEAR: 2007-08 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE: SHRI G.C. GUPTA, VICE-PRESIDENT AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO.149/AGRA/2013 ASSESSMENT YEAR: 2007-08 M/S. PRABHAKAR BHARGAVA, VS. INCOME-TAX OFFICER, PANDA JI KA CHOURAHA, GUNA (M.P.) NAI SADAK, GUNA (M.P.) [PAN : AMZPB 4602 L] APPELLANT BY : NONE RESPONDENT BY : SMT. BELU SINHA, SR. D.R. DATE OF HEARING : 23.07.2015 DATE OF PRONOUNCEMENT : 24.07.2015 O R D E R PER G.C. GUPTA, V.P. : THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEA R 2007-08 IS DIRECTED AGAINST THE ORDER OF THE CIT(A). 2. AT THE TIME OF HEARING OF THIS APPEAL, NONE ATTE NDED ON BEHALF OF THE ASSESSEE-APPELLANT. ACCORDINGLY, THE APPEAL OF THE ASSESSEE IS BEING DISPOSED OF EXPARTE QUA THE ASSESSEE ON MERIT S AFTER HEARING THE LEARNED DR. 3. GROUNDS OF APPEAL OF THE ASSESSEE ARE AS UNDER : 1. THAT THE LEARNED AO ERRED IN ADDING RS.100000/- AMOUNT WHICH IS USED IN PURCHASE OF LAND. THE LEARN ED AO I.T.A. NO. 149/AGRA/2013 ASSESSMENT YEAR: 2007-08 PAGE 2 OF 4 WITHOUT UNDERSTANDING THE CORRECT FACT THAT THE DAL ALI INCOME OF RS.1,00,000/- IS USED IN PURCHASE OF LAND WRONGL Y ADDED THE SURRENDER AMOUNT OF RS.100000/-. 2. THAT THE LEARNED AO GROSSLY MISTAKEN IN ESTIMATI NG THE TRACTOR RENTAL INCOME U/S. 44AE OF THE IT ACT WITHO UT ANY BASIS. 3. THAT THE LEARNED AO DISALLOWED RS.145517/- OUT O F DEVELOPMENT EXP. CLAIMED ON PROPORTIONATE BASIS ON THE AREA SOLD BUT DID NOT GIVE ANY FINDING TO ALLOW THE SAME IN THE NEXT YEAR. 4. THAT THE LEARNED AO WRONGLY ESTIMATED H/H EXP. A T RS.48000/- IN PLACE OF RS.36000/- AND WRONGLY ADDED RS.12000/- IN THE TOTAL INCOME. 4. THE LEARNED DR SUBMITTED THAT THERE WAS A SURVEY OPERATION CARRIED OUT BY THE DEPARTMENT AT THE BUSINESS PREMI SES OF THE ASSESSEE AND THE ASSESSEE HAS MADE A SURRENDER OF R S.2,50,000/- AT THE TIME OF SURVEY, BUT AT THE TIME OF FILING OF RE TURN OF INCOME, THE ASSESSEE SURRENDERED ONLY RS.1,50,000/- AND THEREFO RE, ADDITION OF RS.1,00,000/- MADE BY THE DEPARTMENT WAS JUSTIFIED. SHE RELIED ON THE ORDER OF THE AO AND THE CIT(A). 5. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNE D DR AND HAVE PERUSED THE ORDERS OF THE AO AND THE CIT(A). W E FIND THAT THE ASSESSEE HAS STATED IN STATEMENT BEFORE THE SURVEY TEAM ON OATH THAT HE HAS AN INCOME FROM DALALI TO THE TUNE OF RS .1,00,000/- PER YEAR AND HAS SURRENDERED THE SAID INCOME ALONG WITH THE INVESTMENT IN PURCHASE OF LAND AT RS.1,00,000/- AND HAS ALSO D ECLARED AGRICULTURAL INCOME OF RS.42,000/-. THE ASSESSEE CL AIMED THAT IN ITS INCOME-TAX RETURN FILED FOR THE RELEVANT YEAR, IT H AS SHOWN I.T.A. NO. 149/AGRA/2013 ASSESSMENT YEAR: 2007-08 PAGE 3 OF 4 SURRENDERED INCOME CORRECTLY AND HAS KEPT HIS WORDS . HE SUBMITTED THAT INCOME OF EARLIER YEAR WAS USED FOR THE INVEST MENT IN PURCHASE OF LAND. WE FIND THAT THERE IS NO MATERIAL BROUGHT ON RECORD TO DISCREDIT THE CLAIM OF THE ASSESSEE. IT SEEMS THAT THE INCOME OF RS.2,50,000/- DECLARED BY THE ASSESSEE INCLUDES DAL ALI OF RS.1,00,000/- ALSO AND THERE IS NO MATERIAL ON RECO RD TO JUSTIFY THE CONCLUSION OF CIT(A) THAT INCOME OF DALAI OF RS.1,0 0,000/- AND OTHER INCOME OF RS.2,50,000/- WERE DECLARED SEPARATELY BY THE ASSESSEE. THEREFORE, THE ADDITION OF RS.1,00,000/- WAS WRONGL Y MADE AND SUSTAINED BY THE CIT(A). THE ISSUE IS DECIDED IN FA VOUR OF THE ASSESSEE AND GROUND OF APPEAL NO. 1 OF THE ASSESSEE IS ALLOWED. 6. THE OTHER ISSUE IS OF ESTIMATE OF TRACTOR RENTAL INCOME AT RS.37,800/-. WE ARE OF THE VIEW THAT THE ESTIMATE M ADE OF INCOME OF TRACTOR AT RS.37,800/- SEEMS TO BE REASONABLE AND A S SUCH, NO INTERFERENCE IN THE ORDER OF CIT(A) IS CALLED FOR A ND THE GROUND OF APPEAL NO. 2 OF THE ASSESSEE IS DISMISSED. 7. REGARDING GROUND OF APPEAL NO. 3 OF THE ASSESSEE PERTAINING TO DISALLOWANCE OF RS.1,45,517/- OUT OF DEVELOPMENT EX PENSES CLAIMED ON PROPORTIONATE BASIS ON THE AREA SOLD, WE FIND TH AT THE ASSESSEE HAS CLAIMED THAT CIT(A) SHOULD HAVE GIVEN A FINDING TO ALLOW THE SAME IN THE NEXT YEAR. WE FIND THAT THE DISALLOWANC E WAS CORRECTLY MADE BY THE AO SINCE ONLY THE EXPENSES IN RESPECT O F WHICH REVENUE HAS BEEN BOOKED BY THE ASSESSEE COULD BE CLAIMED AS DEDUCTION. HOWEVER, THE ASSESSEE SHALL BE FREE TO CLAIM THE DE DUCTION OF THE DISPUTED AMOUNT OF DEVELOPMENT EXPENSES IN THE SUBS EQUENT I.T.A. NO. 149/AGRA/2013 ASSESSMENT YEAR: 2007-08 PAGE 4 OF 4 ASSESSMENT YEARS WHEN OTHER AREA IS SOLD BY THE ASS ESSEE AS PER LAW. 8. THE NEXT ISSUE IS REGARDING THE ADDITION OF RS.1 2,000/- ON ACCOUNT OF LOW HOUSEHOLD EXPENSES. WE FIND THAT THE AMOUNT OF SURRENDER MADE BY THE ASSESSEE SHALL COVER THE LOW HOUSEHOLD EXPENSES OF RS.12,000/- AND THEREFORE, NO SEPARATE ADDITION ON THIS GROUND COULD BE MADE AND THE GROUND NO. 4 OF APPEAL OF THE ASSESSEE IS ALLOWED. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH JULY, 2015. SD/- SD/- INTURI RAMA RAO G.C. GUPTA (ACCOUNTANT MEMBER) (VICE- PRESIDEN T) DATED: AGRA: 24 TH JULY, 2015 *AKS/- COPIES TO: (1) THE APPELLANT (2) THE RESPOND ENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE(6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA