V. Ganesh Rao, V. ITO,

ITA 252/BANG/2014

• Counselvise Citation: 25221114 RSA 2014
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 19-02-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P DHIVAHAR
• Assessee Lawyers: N O N E

Judgement Text

ITA NO.252 OF 2014- V GANESH RAO BANGALORE PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE ABENCH, BANGALORE BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI JASON P. BOAZ, ACCOUNTANT MEMBER ITA NO.252/BANG/2014 (ASSESSMENT YEAR: 2004-05) SHRI V. GANESH RAO, NO.117 CUBBONPET MAIN ROAD, BANGALORE 560002 PAN: ACVPG 0829 N VS. INCOME TAX OFFICER WARD 7(1) BANGALORE (APPELLANT) (RESPONDENT) ASSESSEE BY: N O N E DEPARTMENT BY: SHRI P. DHIVAHAR, JCIT, (DR) DATE OF HEARING: 18/11//2014 DATE OF PRONOUNCEMENT: 18/11/2014 O R D E R PER RAJPAL YADAV, J.M. THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE OR DER OF THE LEARNED CIT (A) DATED 18.10.2013 PASSED FOR ASSESSM ENT YEAR 2004-05. IN RESPONSE TO THE NOTICE OF HEARING, SHRI K. KIRAN KUMAR, ADVOCATE FILED AN APPLICATION FOR ADJOURNMEN T ON THE GROUND THAT HE HAS THROAT INFECTION, BUT AFTER GOIN G THROUGH THE APPEAL, WE DO NOT SEE ANY REASON TO ADJOURN THE HEA RING. THE SOLITARY GRIEVANCE OF THE ASSESSEE IS THAT THE LEAR NED CIT (A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.3.00 LAKHS. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS AN INDIVIDUAL. HE HAS FILED HIS RETURN OF INCOME ON 31 .12.2004 DECLARING TOTAL INCOME OF RS.1,75,800/- AND AGRICUL TURAL INCOME OF RS.6.00 LAKHS. THE DISPUTE RELATES TO THIS AGRIC ULTURAL INCOME. ACCORDING TO THE ASSESSING OFFICER, THE ASSESSEE DI D NOT MAINTAIN ITA NO.252 OF 2014- V GANESH RAO BANGALORE PAGE 2 OF 4 BILLS AND VOUCHERS AND EXPENSES INCURRED FOR AGRICU LTURAL OPERATIONS. HE HAS NO DETAILS INDICATING HOW THE AG RICULTURAL OPERATIONS WAS CARRIED OUT AND WHERE THE PRODUCE WE RE SOLD. THE ASSESSEE IS HOLDING 15.54 ACRES OF LAND AT TWO DIFF ERENT PLACES. THE ASSESSING OFFICER DID NOT ACCEPT THE CLAIM OF A GRICULTURAL INCOME, HE MADE AN ADDITION OF RS.6.00 LAKHS. 3. ON APPEAL, THE CIT (A) DELETED THE ADDITION BY R S.3.00 LAKHS ON AN ESTIMATE AND UPHELD THE CLAIM OF THE AS SESSEE FOR EARNING AGRICULTURAL INCOME AT RS.3.00 LAKHS. THE B ALANCE WAS ADDED AS INCOME FROM OTHER SOURCES. 4. WITH THE ASSISTANCE OF THE LEARNED DR, WE HAVE G ONE THROUGH THE RECORD CAREFULLY. ADMITTEDLY THE ASSESS EE HAS NO DETAILS. HE FAILED TO PRODUCE SPECIFIC DETAILS WITH SUPPORTING MATERIAL BEFORE THE ASSESSING OFFICER. SAME IS THE POSITION BEFORE THE CIT (A) WITH REGARD TO THE NATURE OF EVIDENCE P OSSESSED BY THE ASSESSEE. HE ONLY SUBMITTED THAT SMT. GUNA BAI, HIS MOTHER AND HIS BROTHER SRI V. VENKATESH RAO HAD SHOWN AGRI CULTURAL INCOME FROM IDENTICAL LAND HOLDING WHICH CONTAINS C OCONUT TREES ALSO. THE TOTAL INCOME AT RS.10,36,350/- WAS ESTIMA TED OUT OF WHICH THE ASSESSEE CLAIMED RS.4,05,420/- AS HIS SHA RE. HE OWNS 39.12% SHARE AS COCONUT TREES. ACCORDINGLY HIS MOTH ER EARNED AN INCOME OF RS.2,08,306 (340 COCONUT TREES, 20.1%) HAS BEEN ACCEPTED. ON THIS ANALOGY IT WAS PLEADED THAT INCOM E AT RS.6.00 LAKHS BE ACCEPTED. WE FIND THAT THE ASSESSEE HAS PR ODUCED RECORD RIGHTS IN SUPPORT OF THE AGRICULTURAL LAND H OLDING IN CHANNAPATNA TALUK(10.51 ACRES AT VEDDARAHALLI AND 5 .03 ACRES AT HUNASALLI). TAKING INTO CONSIDERATION THE TOTALI TY OF THE FACTS AND CIRCUMSTANCES AND THE LAND HOLDING HELD BY THE ASSESSEE, WE ARE OF THE VIEW THAT 15.54 ACRES OF LAND WOULD GENE RATE INCOME OF ITA NO.252 OF 2014- V GANESH RAO BANGALORE PAGE 3 OF 4 RS.5.00 LAKHS. THE ESTIMATION OF INCOME AT RS.3.00 LAKHS IS ON THE LOWER SIDE. THOUGH PRECISILY THERE IS NO EVIDEN CE ON THE RECORD, BUT FOR ESTIMATING AT THIS FIGURE OF RS.5.0 0 LAKHS, WE HAVE TO JUST RELY UPON THE FACTS AND CIRCUMSTANCES WE CO LLECT IN OUR DAY TO DAY LIVING IN THE SOCIETY. IT IS TO BE APPRE CIATED THAT NOWADAYS AN ACRE OF LAND WOULD FETCH A RENT ONLY UP TO RS.20,000/-. IF A PERSON HIMSELF CARRY OUT AGRICULT URAL ACTIVITIES, THEN IT CAN BE ESTIMATED UPTO RS.30,000/- TO RS.35, 000/- PER ACRE. THEREFORE, THE ESTIMATION UPHELD BY THE LEARN ED CIT (A) IS ON THE LOWER SIDE. WE ALLOW THE APPEAL OF THE ASSES SEE PARTLY AND DIRECT THE ASSESSING OFFICER TO TAKE ESTIMATED AGRI CULTURAL INCOME IN THE HANDS OF THE ASSESSEE AT RS.5.00 LAKHS INSTE AD OF RS.6.00 LAKHS CLAIMED BY THE ASSESSEE. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH NOVEMBER, 2014. SD/- SD/- (JASON P. BOAZ) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE DATED 18 TH NOVEMBER, 2014. VNODAN/SPS COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCHES, BANGALORE ITA NO.252 OF 2014- V GANESH RAO BANGALORE PAGE 4 OF 4