Smt. S. Indrani & Others, Coimbatore V. ITO, Coimbatore

ITA 2421/CHNY/2006

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 57996 (ITAT-CHENNAI)
• Duration Of Justice: 5 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-03-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 06-03-2012
• Assessment Year: 2003-2004
• Appeal Filed On: 14-12-2006
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S SRIDHAR
• Keywords: Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO. 2421/(MDS)/2006 ASSESSMENT YEAR : 2003-04 SHRI R. SUBBAIYAN, C/O M/S. R.SUBBAIYAN & BROS. GANDHI MAIDAN METTUPALAYAM, COIMBATORE-641301. VS. THE INCOME-TAX OFFICER, WARD-V(1), COIMBATORE. PAN AIJPS 3044 H (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE RESPONDENT BY : SHRI ANIRUD H RAI, IRS, COMMISSIONER OF INCOME-TAX & SHRI KEB RENGARAJAN, JUNIOR STANDING COUNSEL DATE OF HEARING : 6 TH MARCH, 2012 DATE OF PRONOUNCEMENT : 6 TH MARCH, 2012 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT: THIS APPEAL FILED BY THE ASSESSEE RELATES TO THE ASSESSMENT YEAR 2003-04. THE APPEAL IS DIRECTED AGAINST THE O RDER OF THE ITA 2421/06 :- 2 -: COMMISSIONER OF INCOME-TAX(APPEALS)-II AT COIMBATOR E DATED 26.09.2006 AND ARISES OUT OF THE ASSESSMENT COMPLET ED UNDER SEC.143(3) OF THE INCOME-TAX ACT, 1961. 2. THE ASSESSEE EARNS BUSINESS INCOME AS WELL AS AGRICULTURAL INCOME. THE ASSESSEE HAS RETURNED AN AGRIC ULTURAL INCOME OF ` 10 LAKHS. IN COMPLETING THE ASSESSMENT, THE ASSES SING OFFICER DISALLOWED ` 1,00,000/- AGAINST THE AGRICULTURAL INCOME AND ADD ED THE SAME TO THE TAXABLE INCOME OF THE ASSESSEE. TH IS ISSUE WAS CONFIRMED IN FIRST APPEAL. 3. THE ONLY GROUND RAISED BY THE ASSESSEE IN T HE PRESENT APPEAL IS THAT THE LOWER AUTHORITIES HAVE ERRED IN MAKING/SUSTAINING AN ADDITION OF ` 1,00,000/-. 4. WE HEARD BOTH THE SIDES AND CONSIDERED THE MATTER. 5. THE ASSESSEE IS EARNING INCOME FROM A PARTN ERSHIP FIRM CARRYING ON THE BUSINESS OF PLYING TRANSPORT LORRIE S. ALONG WITH THE SAID INCOME, THE ASSESSEE HAS DECLARED AN AGRICULTU RAL INCOME OF ` 10 LAKHS. THE AGRICULTURAL INCOME IS STATED TO HA VE BEEN DERIVED OUT OF 25 ACRES OF LAND OWNED BY THE ASSESSEE IN ME TTUPALAYAM. ITA 2421/06 :- 3 -: THE CULTIVATION CARRIED OUT BY THE ASSESSEE CONSIST ED OF PLANT, VEGETABLES AND COCONUTS. THE ASSESSING OFFICER ACC EPTED THE EXTENT OF LAND OWNED BY THE ASSESSEE AND ALSO THE F ACTUM OF CULTIVATION OF DIFFERENT CROPS. BUT HE DISALLOWED ` 1,00,000/- FROM THE AGRICULTURAL INCOME RETURNED BY THE ASSESSEE. 6. WE DO NOT FIND ANY VALID REASON TO SUSTAIN A NOMINAL DISALLOWANCE OF ` 1,00,000/-, PRESUMABLY FOR THE SAKE OF MAKING THE DISALLOWANCE. THE ASSESSEE IS HOLDING SUBSTANTIAL EXTENT OF CULTIVABLE LAND TO THE EXTENT OF 25 ACRES. THE AS SESSEE IS CULTIVATING SEASONAL VEGETABLES FOR EARNING GOOD AMOUNT OF INCO ME. THE ASSESSEE IS ALSO EARNING INCOME FROM STAPLE CROP OF COCONUT FARMS. IN EARLIER ASSESSMENT YEARS ALSO, A GOOD AMOUNT OF INCOME WAS ACCEPTED IN THE HANDS OF THE ASSESSEE. AS FAR AS T HE IMPUGNED ASSESSMENT YEAR IS CONCERNED, THE REASON POINTED OU T BY THE ASSESSING OFFICER FOR MAKING DISALLOWANCE OF ` 1,00,000/- IS ONLY ON CERTAIN GENERAL OBSERVATIONS. 7. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE DELETE THE ADDITION OF ` 1,00,000/- AND DIRECT THE ASSESSING AUTHORITY TO T REAT THE SAME AS AGRICULTURAL INCOME. ITA 2421/06 :- 4 -: 8. IN RESULT, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON TUESDAY, THE 6 TH OF MARCH, 2012 AT CHENNAI. SD/- SD/- (VIKAS AWASTHY) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 6 TH MARCH, 2012. MPO* COPY TO: (1) PETITIONE R (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.