Smt. Madhu Rani Agarwal, Agra V. Dy. C.I.T.-4(1), Agra

ITA 173/AGR/2011

• Counselvise Citation: 17320314 RSA 2011
• Duration Of Justice: 10 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2003-2004
• Appeal Filed On: 13-05-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A K SHARMA
• Keywords: Income from undisclosed sources

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER & SHRI A. L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 173/AGRA/2011 ASST. YEAR : 2003-04 SMT. MADHU RANI AGARWAL, VS. D.C.I.T.-4(1), C-50, KAMLA NAGAR, AGRA. AGRA (PAN : AAYPA 0887 B) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANURAG SINHA, ADVOCATE RESPONDENT BY : SHRI A.K. SHARMA, JR. D.R. DATE OF HEARING : 22.03.2012 DATE OF PRONOUNCEMENT OF ORDER : 23.03.2012 ORDER PER BHAVNESH SAINI, J.M. : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LD. CIT(A)-II, DEHRADUN (CAMP AGRA) DATED 08.03.2011 FOR THE ASSES SMENT YEAR 2003-04, CHALLENGING THE ADDITION OF RS.1,55,900/- MADE ON A CCOUNT OF ESTIMATE OF AGRICULTURAL INCOME. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E HAS SHOWN AGRICULTURAL INCOME OF RS.1,82,900/- FOR THE FIRST TIME. THE ASSESSEE W AS REQUIRED TO FURNISH EVIDENCE, I.E., KASRA, KHATONI, KISSAN BAHI IN SUPPORT OF THE AGRIC ULTURAL LAND HOLDING, TOTAL AREA OF LAND, CROPS CULTIVATED DURING THE YEAR AND DETAILS OF QUANTITY OF AGRICULTURAL PRODUCE ITA NO. 173/AGRA/2011 2 AND THE SAME SOLD THROUGH KISSAN MANDI SAMITI ALONG WITH EXPENSES INCURRED FOR EARNING AGRICULTURAL INCOME. THE ASSESSEE HAS NOT F ILED ANY EVIDENCE EXCEPT COPY OF KHATONI SHOWING OWNERSHIP OF THE AGRICULTURAL LAND AND SOME VOUCHERS SHOWING PURCHASE OF POTATO SEEDS AND VARDANA. THE AO IN THE ABSENCE OF ADEQUATE EVIDENCE AND MATERIAL OBSERVED THAT IT WILL BE REASONABLE TO ESTIMATE AGRICULTURAL INCOME AND NORMAL INCOME OF RS.10,000/- PER ACRE IS DERIVED BY FARMERS IN THE AREA OF ETMADPUR. THE LAND HOLDING OF THE ASSESSEE WAS FOUND TO BE 2. 73 ACRES AND AGRICULTURAL INCOME WAS ESTIMATED AT RS.27,000/- AND BALANCE OF RS.1,55 ,900/- WAS ADDED, BEING INCOME FROM UNDISCLOSED SOURCES. THE LD. CIT(A) CONFIRMED THE ADDITION. 3. THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW AND SUBMITTED THAT THE ADDITION I S EXCESSIVE AND SAME MAY BE MODIFIED REASONABLY. ON THE OTHER HAND, THE LD. DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IT IS NOT IN DISPUTE THAT ASSESSEE WAS HOLDING LAND FOR THE PURPOSE OF CULTIVATION. CERTAI N EVIDENCES WERE PRODUCED BEFORE THE AO TO SHOW THAT THE ASSESSEE EARNED AGRICULTURA L INCOME. THEREFORE, THE AO WAS SATISFIED WITH THE EXPLANATION OF THE ASSESSEE THAT THE ASSESSEE EARNS SOME AGRICULTURAL INCOME AND ACCORDINGLY, ESTIMATED THE AGRICULTURAL INCOME. HOWEVER, THE AO HAS NOT GIVEN ANY PROPER BASIS FOR ESTIMATING THE AGRICULTU RAL INCOME IN THE SUM OF ITA NO. 173/AGRA/2011 3 RS.27,000/-. EQUALLY, THE ASSESSEE HAS ALSO NOT GIV EN ANY SPECIFIC EVIDENCE TO PROVE THE QUANTUM OF AGRICULTURAL INCOME EARNED. IT BEING A SMALL CASE, INSTEAD OF REMANDING THE MATTER FOR FURTHER ADJUDICATION, WE FIND IT APP ROPRIATE TO CONFIRM THE ESTIMATE OF AGRICULTURAL INCOME. CONSIDERING THE LAND HOLDING O F THE ASSESSEE AND OTHER INCOMES SHOWN IN THE RETURN OF INCOME, IT WOULD BE REASONAB LE TO HOLD THAT THE ASSESSEE HAS EARNED AGRICULTURAL INCOME IN A SUM OF RS.55,000/- AS AGAINST THE CLAIM MADE IN THE RETURN OF INCOME AT RS.1,82,900/-. THE ORDERS OF TH E AUTHORITIES BELOW ARE ACCORDINGLY MODIFIED TO THE ABOVE EXTENT AND THE AO IS DIRECTED TO TREAT RS.55,000/- AS AGRICULTURAL INCOME EARNED BY ASSESSEE AND MAKE ADDITION ACCORDI NGLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A.L. GEHLOT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE ASSISTANT REGISTRAR TRUE COPY