Srirangapatna Ramachandara Udayshankar , Bangalore V. Deputy Commissioner of Income Tax Circle-5(2)(1), Bangalore

ITA 2313/BANG/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5146 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 18-02-2020
• Assessment Year: 2015-2016
• Appeal Filed On: 03-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. PREMI
• Assessee Lawyers: SHRIS. RAMASUBRAMANIAM
• Keywords: Set aside
• Section: 143(3); 142(1); 250; 201; 143(2); 22; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES C BENCH: BANGALORE BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 2313 /BANG/2018 (ASSESSMENT YEAR: 201 5 - 16 ) SRIRANGAPATNA RAMACHANDARA UDAYSHANKAR, NO.80, 1 ST MAIN ROAD, CHAMARAJPET, BANGALORE . .APPELLANT PAN AAHPU 7652H VS. DY . COMMISSIONER OF INCOME TAX, CIRCLE 5(2)(1), BANGALORE. RESPONDENT. ASSESSEE BY: SHRI S. RAMASUBRAMANIAM, C.A. REVENUE BY: S MT. R. PREMI, JCIT (D.R) DATE OF HEARING : 18.02 .20 20 DATE OF PRONOUNCEMENT : 19 .02 .20 20 O R D E R PER SHRI PAVAN KUMAR GADALE, JM : THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 5, BANGALORE PASSED U/S 1 4 3 (3) AND 250 OF THE INCOME TAX ACT, 1961 (THE ACT) . 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 2 ITA NO.2313/BANG/2018 3. THE BRIEF FACTS OF THE CASE THAT, THE ASSESSEE IS ENGAGED IN CONTRACT WORKS AND DERIVES INCOME FROM BUSINESS AND INCOME OTHER SOURCES AND AGRICULTURAL INCOME . T HE RETURN OF INCOME WAS FILED ON 30.10.2015 WITH TOTAL INCOME OF RS.69,74,070 / - . SUBSEQUENTLY, THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS AND NOTICE UNDER SECTION 143(2) AND 142(1) OF THE ACT WERE ISSUED. IN COMPLIANCE, THE LDAR APPEARED FROM TIME TO TI ME AND THE CASE WAS DISCUSSE D. THE ASSESSIN G OFFICER FOUND MIS - MAT CH OF CONTRACT RECEIPTS AND ALSO OBSERVED THAT THE ASSESSEE HAS DISCLOSED NET AGRICULTURAL INCOME OF RS.21,50,000 / - AFTER CLAIMING EXPENDITURE 3 ITA NO.2313/BANG/2018 OF RS5,50,000/ - AND CALLED FOR THE EVIDENCE S . IN COMPLIANCE ASSESSEE FILED LETTER DT.5.7.2017 ALONG WITH DETAILS OF OWNERSHIP, AGRICULTURAL INCOME RECEIPTS, LEDGER EXTRACTS AND THE DETAILS OF EXPENSES. WHEREAS THE A SSESSING OFFICER DEALT ON NET AGRICULTURAL IN COME OF RS.21,50,000 AND PRESUMED, THAT THE GROSS AGRICULTURE INCOME WI LL BE MUCH HIGHER AND DISPUTED THE AGRICULTURE RECEIPTS AND MADE ADDITION OF NET AGRICULTURAL INCOME OF RS21,50,000/ - A ND A SSESSED TAXABLE INCOME OF RS.91,24,070 / - AND PASSED THE ORDER UNDER SECTION 14 3(3) OF THE ACT DT.8.11.2017. AGGRIEVED BY THE ASSES SMENT ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT (APPEALS) , WHEREAS CIT (APPEALS) CONCURRED WITH THE OBSERVATIONS OF THE ASSESSING OFFICER AND DISMISSED THE ASSESSEE APPEAL. AGGRIEVED BY THE CIT (APPEALS) ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE TRIBUNAL. 4. AT THE TIME OF HEARING, THE LEARNED AUTHORIZED REPRESENTATIVE SUBMITTED THAT THE CIT (APPEALS) HAS ERR ED IN CONFIRMING THE ADDITION OF AGRICULTURE INCOME IRRESPECTIVE OF THE FACT THAT THE ASSESSEE HAS BEEN OFFERING THE AGRICULTURE INCOME FROM EARLIER ASSESSMENT YEARS AND WAS ACCEPTED BY THE REVENUE. FURTHER THE ASSESSEE HAS SUBSTANTIATED THE OWNERSHIP OF AGRICULTURE LA ND HOLDINGS WHICH IS NOT DISPUTED BY THE REVENUE , FURTHER FILED PAPER BOOK WITH DETA ILS OF AGRICULTURE HOLDINGS AND EXTRACTS OF AGRICULTURE RECEIPTS AND PRAYED FOR ALLOWING THE APPEAL. CONTRA, THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS OF ASSESSING OFFICER AND CIT (APPEALS). 4 ITA NO.2313/BANG/2018 5. WE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. PRIMA FACIE, THE LEARNED AUTHORIZED REPRESENTATIVES CONTENTION S ARE THAT T HE ASSESSING OFFICER HAS MADE ADDITION OF NET AGR ICULTURE INCOME OF RS.21,50,000 / - DUE TO NON AVAILABILITY OF EVIDENCE TO SUBSTANTIATE THE GROSS A GRICULTURE INCOME. WHEREAS, T HE ASSESSEE HAS FILED WRITTEN SUBMISSIONS IN THE APPELLATE PROCEEDING WITH CIT(A), AND EXPLAINED , THE AGRICULTURE INCOME OFFERED BY THE ASSESSEE FROM ASSESSM ENT YEARS 2011 - 12 TO 2015 - 16 ,AND THE AGRICULTURE INCOME WAS ACCEPTED B Y THE REVENUE IN THE INCOME TAX ASSESSMENTS. T H E LDAR DEMONSTRATED THE COMPUTATION OF INCOME FOR ASSESSMENT YEAR 2014 - 20 15 AT PAGE 27 OF THE PAPER BOOK, WERE THE ASSESSEE HAS DISCLOSED THE NET AGRICULTURE INCOME AND IT WAS CONSIDERED IN COMPUTING THE TOTAL INC OME FOR RATE PURPOSE. FURTHER AT PAGE 22 OF THE PAPER BOOK , ASSESSMENT ORDER FOR ASSTYEAR 2014 - 2015 UNDER SECTION 143(3) OF THE ACT DT.29.07.2016 WAS FILED. O N PERUSAL OF THE ASSESSMENT ORDER, WE FOUND THE ASSESSEE HAS FILED RETURN OF INCOME DISCLOSING AGRICULTURE INCOME AND WAS NOT DISPUTED BY THE REVENUE. FURTHER, THE LD. AR FILED THE DETAILS OF AG RICULTURE LAND HOLDING, INVOICE COPIES TO SUBSTANTIATE THE RECEIPT OF AGRICULTURE INCOME. CONSIDERING THE FACTS AND CIRCUMSTANCES AND EVIDENCE FILED , WE ARE OF THE OPINION THAT THE ASSESSING OFFICER HAS MADE ESTIMATION OF AGRICULTURE INCOME WITHOUT ANY BASIS, THEREFORE WE CON SIDER IT APPROPRIATE TO REMIT THE DISPUTED ISSUE TO THE FILE OF ASSES SING OFFICER. ACCORDINGLY , WE SET ASIDE THE ORDER OF CIT(APPEALS) AND RESTORE 5 ITA NO.2313/BANG/2018 THE ENTIRE DISPUTED ISSUE S FOR LIMITED PURPOSE TO THE FILE OF ASSESSING OFFICER FOR EXAMI NATION AND VERIFICATION AND THE ASSESSEE SHOULD BE PROVIDED ADEQUATE OPPORTUNITY OF HEARING AND SHALL CO - OPERATE IN SUBMITTING THE INFORMATION AND ALLOW THE GROUNDS OF APPEAL OF ASSESSEE FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE ASSESSEE'S APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE C APTION PAGE. S D / - S D / - (A.K. GARODIA) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 1 9 .02 . 20 20 . *REDDY GP COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE