Smt. Archana Rajendra Malu, Kolhapur V. Deputy Commissioner of Income-tax,

ITA 1517/PUN/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2911 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 11-01-2016
• Assessment Year: 2000-2001
• Appeal Filed On: 30-07-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DHEERAJ KUMAR JAIN
• Keywords: Capital receipt
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI PRADIP KUMAR KEDIA , AM . / ITA NO S . 1517 & 1518 /PN/201 4 / ASSESSMENT YEAR S : 200 0 - 0 1 & 200 1 - 0 2 SMT. ARCHANA RAJENDRA MALU, CHANDAN, 8 TH LANE, AZAD ROAD, JAYSINGPUR, TAL SHIROL, DIST - KOLHAPUR . / APPELLANT PAN: ABEPM4622K VS. THE DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, KOLHAPUR . / RESPONDENT / APPELLANT BY : NONE / RESPOND ENT BY : SHRI DHEERAJ KUMAR JAIN / DATE OF HEARING : 11 . 0 1 .201 6 / DATE OF PRONOUNCEMENT: 15 . 0 1 .201 6 / ORDER PER SUSHMA CHOWLA, JM : BOTH THE APPEALS FILED BY THE ASSESSEE ARE AGAINST CONSOLIDATED ORDER OF CIT(A), KOLHAPUR , DATED 0 1. 05 .201 4 RELATING TO ASSESSMENT YEAR S 20 0 0 - 0 1 AND 200 1 - 0 2 AGAINST RESPECTIVE ORDER S PASSED UNDER SECTION 143(3) R.W.S. 153A(B) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) . 2 ITA NO S . 1517 & 1518 /PN/201 4 SMT. ARCHANA RAJENDRA MALU 2. BOTH THE APPEALS RELATING TO THE SAME ASSESSEE WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 3. DESPITE SERVICE OF NOTICE, NONE APPEARED ON BEHALF OF THE ASSESSEE NOR ANY APPLICATION WAS MOVED FOR ADJOURNMENT. ACCORDINGLY, WE PROCEED TO DECIDE THE APPEAL S AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE. 4 . THE ASSESSEE IN ITA NO. 1517 /PN/201 4 HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : - 1. THE COMMISSIONER OF INCOME TAX (APPEALS), KOLHAPUR (CIT(A) IN BRIEF) ERRED IN CONFIRMING THE ADDITION OF THE DCIT, CENTRAL CIRCLE, KOLHAPUR OF AGRICULTURAL SUBSIDY RECEIVED BY THE APPELLANT OF RS.80,740/ - DURING THE YEAR. THE APPELLANT SUBMITS AS UNDER: A . THE APPELLANT HAVING PRODUCED NECESSARY DOCUMENTARY EVIDENCE IN SUPPORT OF HER HAVING RECEIVED THE SUBSIDY THE CIT(A) OUGHT TO HAVE ACCEPTED HER CLAIM THAT THE SUC H RECEIPT, BEING DIRECTLY CONNECTED WITH DEVELOPMENT OF AGRICULTURAL ACTIVITY CARRIED OUT BY HER, IS IN THE NATURE OF CAPITAL RECEIPT AND HENCE NOT LIABLE TO BE TAXED. CAPITAL RECEIPT AND HENCE NOT LIABLE TO BE TAXED. B . WITHOUT PREJUDICE TO THE ABOVE, EVEN IF THE NATURE OF THE RECEIPT IS TREATED TO BE OF REVENUE, THE SAME FORMS PART OF HER AGRICULTURAL INCOME AND HENCE NOT LIABLE TO TAX. THE APPELLANT PRAYS THAT THE DCIT, CENTRAL CIRCLE, KOLHAPUR BE DIRECTED ACCORDINGLY IN THE MATTER. THE APPELLANT CRAVES LEAVE TO ADD TO, AMEND, ALTER, MODIFY, DELETE OR ADD A NEW GROUND OF APPEAL BEFORE OR AT THE TIME OF HEARING. 5 . THE ISSUE ARISING IN BOTH THE APPEALS IS IDENTICAL I.E. WITH REGARD TO THE ADDITION MADE ON ACCOUNT OF AGRICULTURAL SUBSIDY RECEIVED BY THE ASSESSEE . DURING ASSESSMENT YEAR 2000 - 01, THE ASSESSEE HAD RECEIVED AGRICULTURAL SUBSIDY OF RS.80,740/ - AND IN ASSESSMENT YEAR 2001 - 02 , SHE HAD RECEIVED AGRICULTURAL SUBSIDY OF RS.12,000/ - . THE CLAIM OF THE ASSESSEE BEFORE THE AUTHORITIES WAS THAT THE SAID SUBSIDY WAS IN THE NATURE OF CAPITAL RECEIPT AND WAS NOT TAXABLE IN THE HANDS OF THE 3 ITA NO S . 1517 & 1518 /PN/201 4 SMT. ARCHANA RAJENDRA MALU ASSESSEE. AN ALTERNATE PLEA HAS BEEN RAISED BEFORE US THAT EVEN IF THE SAME WAS IN THE NATURE OF REVENUE RECEIPT, SAME FORMS PART OF AGRICULTURAL INCOME AND HENCE, WAS NOT LIABLE TO TAX. 6. BRIEFLY, IN THE FACTS O F THE PRESENT CASE, THE ASSESSEE HAD RECEIVED AGRICULTURAL SUBSIDY OF RS.80,740/ - IN ASSESSMENT YEAR 2000 - 01. THE EXPLANATION OF THE ASSESSEE VIS - - VIS NATURE OF SUBSIDY RECEIVED WAS THAT THE SAME WAS GIVEN IN THE FORM OF REIMBURSEMENT OF EXPENDITURE MADE BY THE ASSESSEE AND HENCE, THE SAME WAS NOT TAXABLE. THE ASSESSING OFFICER REJECTED THE CLAIM OF THE ASSESSEE IN THE ABSENCE OF ANY DOCUMENTARY EVIDENCE FILED IN SUPPORT OF THE SAID CLAIM. FURTHER, THE ASSESSING OFFICER NOTED THAT IN THE CASE OF SHRI VE NKATESHWARA AGRICULTURAL FARMS, IN WHICH THE ASSESSEE WAS A PARTNER, THE SAID AGRICULTURAL SUBSIDY RECEIVED BY IT WAS OFFERED FOR TAXATION, THEREFORE, THE ASSESSING OFFICER HELD THAT THE AGRICULTURAL SUBSIDY RECEIVED BY THE ASSESSEE WAS REVENUE IN NATURE A ND WAS TO BE BROUGHT TO TAX AND THE ADDITION TO THE EXTENT OF RS.80,740/ - WAS MADE IN WAS TO BE BROUGHT TO TAX AND THE ADDITION TO THE EXTENT OF RS.80,740/ - WAS MADE IN THE HANDS OF ASSESSEE. 7. THE CIT(A), KOLHAPUR IN THE FIRST ROUND VIDE ORDER DATED 22.12.2008 CONFIRMED THE ORDER OF ASSESSING OFFICER. BEFORE THE TRIBUNAL, THE ASSESSE E FURNISHED CERTIFICATE S ISSUED BY THE DIVISIONAL AGRICULTURAL OFFICER, JAYSINGPUR, DIST. KOLHAPUR ISSUED ON 20.07.2010 , WHEREIN IT WAS MENTIONED AS TO UNDER WHICH SCHEME AGRICULTURAL SUBSIDY WAS GIVEN TO THE ASSESSEE. SINCE THE SAID CERTIFICATES WERE NOT AVAILABLE BEFORE THE AUTHORITIES BELOW, THE TRIBUNAL SET - ASIDE THE MATTER TO THE FILE OF CIT(A) TO DECIDE THE ISSUE AFRESH. IN THE SECOND ROUND OF APPELLATE PROCEEDINGS, THE ASSESSEE CONTENDED THAT THE SUBSIDIES WERE CREDITED TO HER BANK ACCOUNT , HOWE VER, NO WRITTEN CONFIRMATION COULD BE PRODUCED BEFORE THE ASSESSING OFFICER, AS THE SAME WERE NOT AVAILABLE WITH THE GOVERNMENT DEPARTMENT. BEFORE 4 ITA NO S . 1517 & 1518 /PN/201 4 SMT. ARCHANA RAJENDRA MALU THE CIT(A) , THE COPIES OF BANK STATEMENTS AND LETTERS FROM AGRICULTURAL DEPARTMENT WERE FURNISHED BY THE ASS ESSEE. THE CIT(A) ON GOING THROUGH THE SAME NOTED THAT THE SUBSIDY WAS TREATED AS REVENUE RECEIPT BY THE ASSESSING OFFICER ON THE GROUND THAT NO EVIDENCE WA S PRODUCED IN SUPPORT OF HER CLAIM AND ALSO SIMILAR SUBSIDY RECEIVED BY SHRI VENKATESHWARA AGRICULT URAL FARMS, A GROUP CONCERN WAS TREATED AS REVENUE RECEIPT AND OFFERED TO TAXATION. THE CIT(A) FURTHER NOTED THAT TWO LETTERS DATED 20.07.2010 FROM DIVISIONAL AGRICULTURAL OFFICER, JAYSINGHPUR DID NOT HELP THE ASSESSEE. AS PER LETTER NO.227/2010 DATED 20.07.2010, THE SUBSIDY OF RS.11,250/ - WAS IN RESPECT OF EMPLOYMENT GUARANTEE SCHEME FOR THE YEAR 2000 - 01 . AS PER LETTER NO.228/2010 , DATED 20.07.2010, THE SUBSIDY WAS FOR EMPLOYMENT GUARANTEE SCHEME AND CENTRE AND STATE REWARD IR RIGATION SCHEME. THESE WERE THE SCHEMES TO CREATE GENERAL EMPLOYMENT AND ASSISTANCE FOR IRRIGATION AND THE SAME COULD NOT BE HELD TO BE CAPITAL RECEIPTS. THE CLAIM OF THE ASSESSEE IN THIS REGARD WAS THUS, DISMISSED. 8. ON PERUSAL OF THE RECORD, WE FIND THAT IN RESPECT OF AGRICULTURAL SUBSIDY RECEIVED BY THE ASSESSEE AMOUNTING TO RS.80,740/ - DURING THE YEAR AND RS.12,000/ - IN THE SUCCEEDING YEAR , THE ASSESSEE HAS FAILED TO FURNISH THE EVIDENCE. EVEN BEFORE THE CIT(A), THE EVIDENCE FURNISHED WAS IN RESPEC T OF SUBSIDY OF RS.11,250/ - IN RESPECT OF EMPLOYMENT GUARANTEE SCHEME FOR 2000 - 01 A ND SIMILAR SUBSIDY BEING RECEIVED IN THE SUBSEQUENT YEAR. IN THE ABSENCE OF ASSESSEE HAVING FURNISHED COMPLETE DETAILS AND EVIDENCE IN RESPECT OF SUBSIDY RECEIVED AND HER CLAIM OF EXPENDITURE AGAINST WHICH THE SAID SUBSIDY WAS RECEIVED, WE FIND NO MERIT IN THE CLAIM OF THE ASSESSEE AND THE SAME IS DISMISSED. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE THUS, DISMISSED. 5 ITA NO S . 1517 & 1518 /PN/201 4 SMT. ARCHANA RAJENDRA MALU 9. THE FACTS AND ISSUE IN BOTH THE APPEALS ARE IDENTICAL , HENCE, THE GROUNDS OF APPEAL RAISED IN BOTH THE APPEALS ARE DISMISSED. 10. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE DISMIS SED. ORDER PRONOUNCED ON THIS 15 TH DAY OF JANUARY , 201 6 . SD/ - SD/ - (PRADIP KUMAR KEDIA) (SUSHMA CHOWLA) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 15 TH JANUARY , 201 6 . GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT(A), KOLHAPUR ; 4. / THE CIT - I / II, KOLHAPUR / CIT (CENTRAL), PUNE ; (CENTRAL), PUNE ; 5. , , / DR A , ITAT, PUNE; 6. / GUARD FILE . / BY ORDER , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE