ITO Wd- 2[1] Nashik., Nashik V. Shri Shivnath P Kamankar, Nashik

ITA 1559/PUN/2012

• Counselvise Citation: 155924514 RSA 2012
• Duration Of Justice: 1 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 09-01-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 17-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P L PATHADE
• Assessee Lawyers: SHIVNATH P KAMANKAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE BEFORE: SHRI G. S. PANNU, ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER ITA NO. 1559 /PN/20 12 ASSESSMENT YEAR : 200 8 - 09 INCOME TAX OFFICER , WARD - 2(1), NA SHIK VS. SHRI SHIVNATH P. KAMANKAR, 3, M.J. PARK, PLOT NO. 3, RATHI AMRAI, GANGAPUR ROAD, DISTT. - NASHIK (APPELLANT) (RESPONDENT) PAN NO. ABPPK2294Q APPELLANT BY: SHRI P.L. PATHADE RESPONDENT BY: SHRI SHIVNATH P. KAMANKAR DATE OF HEARING : 09 - 01 - 2014 DATE OF PRONOUNCEMENT : 27 - 01 - 2014 ORDER P ER R.S. PADVEKAR , JM : - IN THIS APPEAL , THE REVENUE HAS CHALLENG ED THE IMPUGNED ORDER OF THE LD. CIT(A) - II, NASHIK DATED 24 - 05 - 2012 F OR THE A.Y. 200 8 - 09. THE REVENUE HAS TAKEN THE FOLLOWING GROUNDS IN THE APPEAL: 1. THE ORDER OF LEARNED CIT(A) - II, NASHIK IS ERRONEOUS BOTH ON POINT OF LAW AS WELL AS ON FACTS. 2. ON THE FACTS AND IN THE CIRCUMSTANCE OF THE CASE, THE LD.CIT(A) - II, NASHIK ERRED IN NOT APPRECIATING THE AO'S ACT OF NON ACCEPTANCE OF SOURCES E XPLAINED BY THE ASSESSEE FOR CASH DEPOSITS IN SAVING BANK ACCOUNT. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) - II, NASHIK WAS ERRED IN IGNORING THE FACT THAT AS PER THE SALE DEED AGREEMENT THE CONSIDERATION RECEIVED ON ACCOUNT OF SA LE OF THE AGRICULTURAL LAND ARE AFTER THE DATE OF DEPOSITING THE CASH INTO SAVING BANK ACCOUNT . 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) - II, NASHIK WAS ERRED IN IGNORING THE BASIC FACT THAT THE A.R. OF THE 2 ITA NO. 1559 /PN/2012, SHRI SHIVNATH P. KAMANKAR, NASHIK ASSESSEE HAD NOT EXPLAI NED THE REASONS FOR MAINTAINCE OF CASH BOOK FOR THE SALARIED PERSON. 5. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) - II, NASHIK WAS ERRED IN IGNORING THE FACT THAT THE STAND TAKEN BY SHRI. M.R. TILE, C.A. AND A.R. OF THE ASSESSEE, WHO HAD REPRESENTED THE CASE DURING THE COURSE OF ASSESSMENT PROCEEDINGS WAS DIFFER WITH THE CONTENTION OF SHRI. LADDHA, C.A. ATTENDED BEFORE THE HIM. 2. THE FACTS WHICH ARE REVEALED FROM THE RECORD AS UNDER. THE ASSESSEE IS WORKING WITH M/S. BOSCH LTD. (FOR MERLY KNOWN AS MICO LTD.) AS A WORKER SINCE 1980. HE WAS HAVING AGRICULTURAL LAND IN A SMALL TOWN A.P. BHENDALI, TAL. NIPHAD, DISTT. - NASHIK. TOTAL AGRICULTURAL LAND IN THE NAME OF THE ASSESSEE AND ASSESSEES SON WAS 2 HECTARE 66 ARE I.E. AROUND 6.55 ACRE S. APART FROM THE SALARY FROM SERVICE/EMPLOYMENT AND AGRICULTURAL INCOME , THE ASSESSEE DOES NOT HAVE ANY OTHER SOURCE OF INCOME OR ANY OTHER BUSINESS. HIS SON WAS ALSO ENGAGED IN FA R MING I.E. AGRICULTURAL ACTIVITIES. THE AGRICULTURAL LAND WAS IRRIGATED AN D MAJOR CROP WAS OF GRAPES. FOR FURTHER DEVELOPMENT OF AGRICULTURAL LAND, CHANGE OF ANGLES, INSTALLATION OF DRIP IRRIGATION SYSTEM, RAIN WATER HARVESTING ETC. THE ASSESSEE AND HIS SON TOOK LOANS FROM CO - OPERATIVE SOCIETIES, BANKS AND RELATIVES. HOWEVER, T HE ASSESSEE HAS STATED TO HAVE INCURRED LOSSES IN AGRICULTURAL OPERATIONS. AS THERE WAS LOSS IN THE AGRI. A CTI VITY AND BURDEN OF REPAYMENT OF VARIOUS LOANS , THE ASSESSEE SOLD AGRICULTURAL LAND IN THE YEAR 2007. THE SAL E PROCEEDS OF THE AGRICULTURAL LAND O F BOTH I.E . O N ASSESSEES NAME AND IN THE NAME OF HIS SON MR. YOGESH KAMANKAR WERE DEPOSITED INTO THE JOINT AC COUNT WITH HIS SON IN THE A X IS BANK. THE ASSESSING OFFICER HAS ADDED THE AMOUNT OF DEPOSITS (RS. 14,21,000/ - ) IN THE SAID ACCOUNT AS ASSESSEES CON CEALED INCOM E. 3. THE ASSESSEE CARRIED THE ISSUE BEFORE THE LD. CIT(A). THE ASSESSEE EXPLAINED THE SOURCE OF DEPOSIT IN BANK A/C. BEFORE THE LD. CIT(A) WHICH IS AS UNDER: 3 ITA NO. 1559 /PN/2012, SHRI SHIVNATH P. KAMANKAR, NASHIK 5. DURING THE COURSE OF APPELLATE PROCEEDINGS APPELLANT HAS MADE A DETAILED SUBMI SSION WHICH IS AS FOLLOWS: I. APPELLANT AND HIS SON WERE HOLDING AN AGRICULTURAL LAND OF 6.65 ACRE (2.66 HECTARE), IRRIGATED AND USED FOR GRAPES GROWING. II. AS AN AVERAGE FROM ONE ACRE APPELLANT GETS 12 TO 15 TON GRAPES PRODUCTION, AND IT GETS SOLD AT RAT E IN THE RANGE OF RS.10 TO 15 PER KG IF IT IS OF THOMSAN OR GANESH DEPENDS ON THE GRADE OF THE GRAPES AND FOR SONANKKA GRAPES RATE EVEN UPTO RS.20 KG ALSO GETS. III. IT IS GENERAL PRACTICE THAT, GRAPES ARE SOLD/DELIVERED ON VARIOUS DAY AND GETS THE PAYME NTS EITHER IMMEDIATE OR IN PARTS. ALSO, IT IS NOT NECESSARY THAT, EVERY TIME APPELLANT GETS INVOICE FOR THE SALE OF GRAPES AND EVEN IF THE APPELLANT GETS IT, MANY TIMES IT IS CONSOLIDATED BILL FOR SALE ON VARIOUS DAYS. IV. APPELLANT DOES NOT HAVE ANY REC ORD, IT IS VERY DIFFICULT TO GIVE EXACT DETAILS OF INCOME RECEIPT FROM AGRICULTURAL ACTIVITY. HOWEVER, THEY COULD FIND ONE OF THE BILL FOR SALE OF GRAPES FOR WHICH THEY HAVE RECEIVED THE AMOUNT ON VARIOUS DAYS. V. [TRANSLATE MARATHI TO ENGLISH] WE, SHRI SHIVAJI BALWANT JADHAV & SMT. LATA SHIVAJI JADHAV (HUSBAND & WIFE) HAVE PURCHASED AGRICULTURAL LAND FROM SHRI SHIVNATH KAMAKAR & SHRI YOGESH KAMANKAR AT POST BHENDALI TAL. NIPHAD IN THE YEAR 2007 AT RS.11,00,000/ - ONLY (RS.4,50,000/ - + RS.6,50,000/ - ). TH E SALE DEED OF PURCHASE OF AGRICULTURAL LAND WAS REGISTERED ON 15/10/2007 AT SUB - REGISTRAR OFFICE. WE HAVE PAID THE FOLLOWING AMOUNTS FOR PURCHASE LAND IS AS GIVEN BELOW: DATE 01/06/2007 RS.1,00,000=00 DATE 19/09/2007 RS.3,80,000=00 DATE 13/10/200 7 RS.5,00,000=00 DATE 15/10/2007 RS.1,20,000=00 _________________ RS.11,00,000=00 [RS. ELEVEN LAKH ONLY.] 4 ITA NO. 1559 /PN/2012, SHRI SHIVNATH P. KAMANKAR, NASHIK VI. THE DEPOSITS IN THE AXIS BANK, S.B. ACCOUNT NO. 230759 WERE MADE ON VARIOUS DATES OUT OF AGRICULTURAL INCOME AND SALE PROCEEDS OF THE AGRICULTURAL LAND . 4. THE LD. CIT(A) ACCEPTED THE EXPLANATION OF THE ASSESSEE AND DELETED THE ENTIRE ADDITION OF RS.14,21,000/ - . NOW THE REVENUE IS IN APPEAL BEFORE US. 5. WE HAVE HEARD THE PARTIES. AS PER THE FACTS ON RECORD, THE ASSESSEE IS WOR KING WITH M/S. BOSCH LTD. (FORMERLY KNOWN AS MICO LTD.) AS A WORKER SINCE 1980 FOR MORE THAN 30 YEARS. THE ASSESSEE HAD AGRICULTURAL LAND IN BHENDALI, TAL. NIPHAD, DISTT. - NASHIK. TOTAL AGRICULTURAL LAND IN THE NAME OF THE ASSESSEE AND HIS SON WAS TO THE EXTENT OF 2 HECTARE 66 ARE I.E. EQUIVALENT TO 6.55 ACRES. THE ASSESSEE S LAND WAS IRRIGATED AND MAJOR CROP WAS OF GRAPES. THE ASSESSEE HA D TO PUT UP THE DRIP IRRIGATION SYSTEM FOR HARVESTING BETTER CROP OF THE GRAPES BUT THE ASSESSEE INCURRED LOSS ES IN HI S AGRICULTURAL ACTIVITIES. THE ASSESSEE WAS FORCED TO SALE THE WHOLE AGRICULTURAL LAND DUE TO THE CIRCUMSTANCES AND SALE PROCEEDS OF THE AGRICULTURAL LAND WHICH WAS IN HIS NAME AS WELL AS ON NAME OF HIS SON I.E. MR. YOGESH KAMANKAR , W AS DEPOSITED INTO THE AXIS BANK ACCOUNT WHICH IS THE JOINT ACCOUNT . THE ASSESSEE EXPLANATION WAS FOUND BONAFIDE BY THE LD. CIT(A). THE ASSESSEE HAS TAKEN THE LOAN FROM VARIOUS INSTITUTIONS. THE ASSESSEE ALSO ESTABLISH ED THE SALE OF AGRICULTURAL LAND BY FILING THE DOCUMENTS BEFORE THE LD. CIT(A). 6. WE HAVE PERUSED THE REASON S OF THE LD. CIT(A) FOR DELETING ADDITION . IN OUR OPINION, THE ASSESSEE HAS EXPLAINED THE SOURCE OF THE DEPOSIT BEFORE THE LD. CIT(A) AND THE LD. CIT(A) HAS RIGHTLY DELETED THE ADDITION. NO INTERFERE NCE IS CALLED FOR IN THE ORDER OF THE LD. CIT(A). ACCORDINGLY, SAME IS CONFIRMED. 5 ITA NO. 1559 /PN/2012, SHRI SHIVNATH P. KAMANKAR, NASHIK 7 . IN RESULT, THE REVENUES APPEAL IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 27 - 01 - 201 4 SD/ - SD/ - ( G.S. PANNU ) ( R.S. PADVEKAR ) ACCOUNTANT MEMBER JU DICIAL MEMBER RK /PS PUNE , DATED : 27 TH JANUARY, 2014 COPY TO 1 ASSESSEE 2 DEPARTMENT 3 THE CIT(A) - II, NASHIK 4 THE CIT - II, NASHIK 5 THE DR, ITAT, A BENCH, PUNE . 6 GUARD FILE. //TRUE COPY// BY ORDER PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL PUNE