Shri N. Rajeswaran, CHENNAI V. ITO, CHENNAI

ITA 1999/CHNY/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68842 (ITAT-CHENNAI)
• Duration Of Justice: 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2013
• Appeal Filed By: Assessee
• Bench Allotted: D
• Next Hearing Date: 22-11-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 13-11-2013
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA
• Assessee Lawyers: GIRISH S SUNDAR ACA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : CHENNAI BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT & SHRI VIKAS AWASTHY, JUDICIAL MEMBER I.T.A. NO. 1999/MDS/2013 & S.P.NO. 89/MDS/2013 (IN ITA NO.1999/MDS/2013) ASSESSMENT YEAR: 2007-08 SHRI N. RAJESWARAN, 3C, BHAGYASHREE APARTMENT, 61-A, SEETHAMMAL ROAD, CHENNAI 600 018. [PAN: AFYPR 4198 F] [APPELLANT/PETITIONER] VS INCOME TAX OFFICER, BUSINESS WARD-XV(2), CHENNAI [RESPONDENT] APPELLANT/PETITIONER BY : SHRI GIRISH S. SUNDAR, ACA RESPONDENT BY : SHRI S. DASGUPTA, JCIT DATE OF HEARING : 22-11-2013 DATE OF PRONOUNCEMENT : 26-11-2013 O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: THE APPEAL ALONG WITH STAY PETITION HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME ITA. NO. 1999/MDS/13 & SP. NO. 89/MDS/13 2 TAX(APPEALS)-V, CHENNAI DATED 19-08-2013 RELEVANT T O THE ASSESSMENT YEAR (AY) 2007-08. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E FILED HIS RETURN OF INCOME FOR THE AY. 2007-08 ON 28-11-2007 DECLARING HIS NET AGRICULTURAL INCOME AS ` 72,23,975/-. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND NOTICE U/S. 143(2) OF THE INCOME TAX ACT, 1961 (HEREIN AFTER REFERRED TO AS THE ACT) W AS ISSUED TO THE ASSESSEE ON 07-08-2008. AS PER THE CASE OF THE ASS ESSEE, THE ASSESSEE IS CULTIVATING APPROXIMATELY 100 ACRES OF LAND. THE ASSESSEE IS CULTIVATING CARDAMOM ON 48 ACRES AND ON THE REMAINING 52 ACRES, THE ASSESSEE IS HAVING COFFEE P LANTS. DURING THE PERIOD RELEVANT TO AY.2007-08, THE ASSESSEE ADM ITTED SALE OF COFFEE AND CARDAMOM AS ` 85,15,825/- AND NET INCOME AS ` 72,23,975/-. THE ASSESSING OFFICER IN ORDER TO VERI FY THE GENUINENESS OF SALE OF AGRICULTURAL PRODUCE, SENT T HE BILLS AND INVOICES FOR CROSS VERIFICATION TO HIS COUNTER-PART HAVING JURISDICTION OVER THE BUYERS OF THE PRODUCE. THE JURISDICTIONAL ITO, THENI AFTER SPOT ENQUIRIES AND VERIFICATION, CONFIRMED THAT THE ADDRESSES MENTIONED ON SALE BILLS DOES NOT EXIST AND THE NAME OF THE CONCERNS AS MENTIONED ON SALE BILLS ARE NOT IN EXI STENCE. THE ITA. NO. 1999/MDS/13 & SP. NO. 89/MDS/13 3 ASSESSING OFFICER, ON THE BASIS OF THE VERIFICATION REPORT MADE ADDITION IN RESPECT OF UN-EXPLAINED CASH CREDITS TO THE TUNE OF ` 68,06,250/-. THE ASSESSEE AGGRIEVED AGAINST THE ASSESSMENT ORDE R DATED 30-12-2009, FILED AN APPEAL BEFORE THE CIT(APPEALS) . THE CIT(APPEALS) VIDE ORDER DATED 19-08-2013, DISMISSED THE APPEAL OF THE ASSESSEE HOLDING THAT THE ASSESSEE COULD NOT PRODUCE ANY AGRICULTURAL ACCOUNT TO CORROBORATE HIS AGRICULTURA L OPERATION AND SALE TO PARTICULAR PARTIES. THE ASSESSEE HAS NOW C OME IN SECOND APPEAL BEFORE THE TRIBUNAL ASSAILING THE ORDER OF C IT(APPEALS). 3. SHRI GIRISH S. SUNDAR, APPEARING ON BEHALF OF TH E ASSESSEE PRAYED FOR STAYING THE OPERATION OF THE IMPUGNED OR DER AND/OR LISTING THE APPEAL FOR HEARING AT AN EARLY DATE. T HE LD. AR OF THE ASSESSEE FURTHER SUBMITTED THAT THE AUTHORITIES BEL OW HAVE SIMPLY BRUSHED ASIDE THE SUBMISSIONS OF THE ASSESSEE. THE ASSESSEE HAS AN ESTABLISHED COFFEE ESTATE FOR THE PAST THIRT Y YEARS AND IS IN CULTIVATION OF CARDAMOM FOR MORE THAN SIX YEARS. T HE TOTAL LAND UNDER CULTIVATION OF THE ASSESSEE IS APPROXIMATELY 100 ACRES. THE NORMAL YIELD OF COFFEE IS 500 KG PER ACRE. THE ASS ESSEE IS IMPLEMENTING INTENSIVE CULTIVATION PRACTICES FOR TH E HIGH YIELD AND ITA. NO. 1999/MDS/13 & SP. NO. 89/MDS/13 4 IN THE RELEVANT AY, THE YIELD HAS BEEN 604 KG PER A CRE. THE VERIFICATION HAS NOT BEEN DONE IN PROPER MANNER. T HE LD.AR PRAYED FOR SETTING ASIDE THE IMPUGNED ORDER. 4. AU CONTRAIRE THE LD.DR SUPPORTED THE IMPUGNED ORDER AND CONTENDED THAT THE ASSESSEE HAS NOT BEEN ABLE TO PR ODUCE ANY DOCUMENTS IN SUPPORT OF HIS SUBMISSIONS. THE INVOI CES AND THE BILLS PRODUCED BY THE ASSESSEE BEFORE THE ASSESSING OFFICER WERE FOUND TO BE NOT GENUINE. THE LD.DR PRAYED FOR THE DISMISSAL OF THE STAY PETITION AND APPEAL OF THE ASSESSEE. 5. BOTH SIDES HEARD. ORDERS OF THE AUTHORITIES BEL OW WERE PERUSED. ASSESSEE HAS FILED HIS RETURN OF INCOME A DMITTING NET AGRICULTURAL INCOME OF ` 72,23,975/-. THE ASSESSEE HAS CLAIMED THAT THE CASH CREDITS IN HIS BANK ACCOUNT ARE FROM THE SALE OF COFFEE AND CARDAMOM AND THE SAME WERE DEPOSITED IN HIS SAVINGS BANK ACCOUNT ON VARIOUS DATES. THE ASSESSEE HAS CL AIMED THAT COFFEE AND CARDAMOM PRODUCE WAS SOLD FOR ` 85.15 LAKHS, FOR WHICH HE PRODUCED BILLS AND INVOICES. ON VERIFICATION OF THE BILLS AND INVOICES, THE ASSESSING OFFICER CAME TO THE CONCLUS ION THAT THE CLAIM OF THE ASSESSEE IN RESPECT OF CASH CREDITS FR OM SALE OF ITA. NO. 1999/MDS/13 & SP. NO. 89/MDS/13 5 CARDAMOM AND COFFEE IS NOT GENUINE AND THUS, ADDITI ON OF ` 68,06,250/- WAS MADE TO THE INCOME RETURNED AS UN-E XPLAINED CASH CREDITS. 6. IT HAS NOT BEEN DISPUTED BY THE REVENUE THAT THE ASSESSEE IS HAVING CULTIVATION OVER LAND MEASURING 100 ACRES. THE ASSESSEE MUST HAVE BEEN CULTIVATING SOME CASH CROP THEREON. IT IS ALSO NOT DISPUTED THAT THE ASSESSEE IS HAVING COFFEE PLANTAT ION AND GROWING CARDAMOM ON THE LAND UNDER CULTIVATION. THE DISPUT E IS ONLY WITH RESPECT TO THE INCOME FROM AGRICULTURAL OPERATIONS. THE AUTHORITIES BELOW HAVE REJECTED ALMOST THE ENTIRE INCOME RETURN ED BY THE ASSESSEE AS AGRICULTURAL INCOME. FROM THE SALE OF AGRICULTURAL PRODUCE, THE ASSESSEE MUST HAVE BEEN EARNING SOME I NCOME. IN THE ABSENCE OF ANY COGENT EVIDENCE TO SHOW THE INCO ME FROM SALE OF AGRICULTURAL PRODUCE, IN OUR CONSIDERED OPINION IT WOULD BE JUST AND REASONABLE TO ALLOW 50% OF THE NET AGRICULTURA L INCOME RETURNED BY THE ASSESSEE. THE IMPUGNED ORDER IS MO DIFIED ACCORDINGLY, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED IN ABOVE SAID TERMS. ITA. NO. 1999/MDS/13 & SP. NO. 89/MDS/13 6 7. SINCE THE APPEAL HAS BEEN DISPOSED-OFF, THE STAY PETITION HAS BECOME INFRUCTUOUS AND THE SAME IS DISMISSED, AS SU CH. ORDER PRONOUNCED ON TUESDAY, THE 26 TH NOVEMBER, 2013 AT CHENNAI. SD/- SD/- (DR. O.K. NARAYANAN) (VIK AS AWASTHY) VICE PRESIDENT JUDICIAL MEMBER DATED: 26 TH NOVEMBER, 2013 TNMM COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR