Smt. Pooja Ridham Sheth, Ahmedabad V. ITO, Ward-4, , Mehsana

ITA 2480/AHD/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1043 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 10-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P D SHAH
• Keywords: Unexplained expenditure

Judgement Text

, . . IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.2480/AHD/2017 ( / ASSESSMENT YEAR : 2014-15) SMT POOJA RIDHAM SHETH SHETH VAS NR. JAIN TEMPLE KALOL 382 721 / VS. THE INCOME TAX OFFICER WARD-4 MEHSANA ./ ./ PAN/GIR NO. :CBWPP 4361 E ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI P.D. SHAH, AR / RESPONDENT BY : SHRI KAMLESH MAKWANA, SR.DR ! / DATE OF HEARING 13/03/2019 '#$% ! / DATE OF PRONOUNCEMENT 15/03/2019 / O R D E R PER SHRI RAJPAL YADAV, JUDICIAL MEMBER : THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE ORDER OF LD.COMMISSIONER OF INCOME TAX(APPEALS)-GANDHINAGAR, AHMEDABAD [CIT(A) IN SHORT] DATED 17/08/2017 PASSED FOR AS SESSMENT YEAR (AY) 2014-15. 2. THE SOLITARY GRIEVANCE OF THE ASSESSEE IS THAT THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.3,24,400/- W HICH WAS ADDED BY THE ITA NO.2480/AHD /2017 SMT. POOJA RIDHAM SHETH VS. ITO ASST.YEAR 2014-15 - 2 - ASSESSING OFFICER ON THE GROUND THAT ASSESSEE MUST HAVE INCURRED UNEXPLAINED EXPENDITURE FOR EARNING THE AGRICULTURA L INCOME. 3. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSEE HA S FILED HER RETURN OF INCOME ELECTRONICALLY ON 29/06/2014 DECLARING TOTAL INCOME AT RS.2,32,460/-. SHE HAS REVISED THIS RETURN ON 26/1 0/2014 DECLARING TOTAL INCOME AT RS.2,60,530/-. THE CASE OF THE ASSESSE E WAS SELECTED FOR SCRUTINY ASSESSMENT AND NOTICE U/S.143(2) OF THE IN COME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'THE ACT') WAS ISSUED A ND SERVED UPON THE ASSESSEE. ON SCRUTINY OF THE ACCOUNTS, IT REVEALE D TO THE ASSESSING OFFICER THAT ASSESSEE WAS POSSESSING 86997 SQUARE Y ARDS OF LAND IN DIFFERENT REVENUE ESTATES. SHE HAS DISCLOSED NET A GRICULTURAL INCOME OF RS.8,11,040/-. THE ASSESSING OFFICER RECORDED A FI NDING THAT AGRICULTURAL LANDS WERE SITUATED IN DIFFERENT REVENUE ESTATES. SHE MUST HAVE INCURRED EXPENDITURE WHICH HAVE NOT BEEN DISCLOSED BY THE AS SESSEE. HE ESTIMATED 40% OF AGRICULTURAL INCOME DISCLOSED BY THE ASSESSE E AS EXPENDITURE AND MADE ADDITION OF RS.3,24,400/-. 4. APPEAL TO THE LD.CIT(A) DID NOT BRING ANY RELIEF TO THE ASSESSEE. 5. WITH THE ASSISTANCE OF LD.REPRESENTATIVES, WE HA VE GONE THROUGH THE RECORD CAREFULLY. 86997 SQ.YDS. OF AGRICULTURA L LAND IF CONVERT INTO ITA NO.2480/AHD /2017 SMT. POOJA RIDHAM SHETH VS. ITO ASST.YEAR 2014-15 - 3 - ACRES, THEN IT WILL COME ROUGHLY 17 ACRES BECAUSE O NE ACRE CONTAINS 4850 SQ.YDS. OF LAND. THE ASSESSEE HAS SHOWN NET AGRICU LTURAL INCOME. IF SOME EXPENSES ARE TO BE ESTIMATED FOR EARNING AGRICULTUR AL INCOME, THEN IT WILL ENHANCE THE AGRICULTURAL INCOME ON GROSS BASIS, THE RE CANNOT BE ANY SEPARATE ADDITION. THE APPROACH AT THE END OF ASSE SSING OFFICER IS ERRONEOUS. IT IS ALSO TO BE KEPT IN MIND THAT 17 A CRES OF LAND CAN GENERATE NET AGRICULTURAL INCOME OF RS.8,11,040/-. IT IS RO UGHLY RS.50,000/- PER ACRE PER ANNUM. IT IS QUITE IMPROBABLE THAT DETAI LS OF AGRICULTURAL PRODUCES AND EXPENDITURES ARE BEING MAINTAINED BY T HE FARMERS. IT WILL ALWAYS BE AN IDEAL SITUATION IF SUCH DETAILS ARE MA INTAINED. BUT IN THE ABSENCE OF SUCH DETAILS, ESTIMATED OPINION OUGHT TO BE FORMED SHOWING HOW MUCH INCOME CAN BE GENERATED IN THIS AREA OUT OF AGRICULTURAL LAND. LOOKING WITH THIS ANGLE, WE ARE OF THE VIEW THAT AD DITION IS NOT SUSTAINABLE. THEREFORE, WE ALLOW THE APPEAL OF THE ASSESSEE AND DELETE THE ADDITION. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE COURT ON 15 TH MARCH-2019 AT AHMEDABAD. SD/- SD/- ( PRADIP KUMAR KEDIA) ( RAJPAL YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 15/ 03 /2019 (!.., .*../ T.C. NAIR, SR. PS ITA NO.2480/AHD /2017 SMT. POOJA RIDHAM SHETH VS. ITO ASST.YEAR 2014-15 - 4 - !'#$#! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. +,- . / CONCERNED CIT 4. . ( ) / THE CIT(A)-GANDHINAGAR, AHMEDABAD 5. 123 * *,- , ! ,-% , + / DR, ITAT, AHMEDABAD 6. 356 7 / GUARD FILE. / BY ORDER, 1 * //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 13.3.19 (DICTATION-PAD 7- P AGES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ..14.3.19 3. OTHER MEMBER... 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.15.3.19 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 15.3.19 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER