Shantinath S. Vathare, Sangli V. Income-tax Officer, Ward - 1(1), Sangli

ITA 2950/PUN/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8889 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 05-12-2019
• Assessment Year: 2011-2012
• Appeal Filed On: 11-12-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED
• Keywords: Income from undisclosed sources; Revised return
• Section: 143(3); 143(1); 6; 263; 63; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO.2950/PUN/2017 / ASSESSMENT YEAR : 2011-12 SHANTINATH S. VATHARE, PRAKASH BUNGLOW, A/P. INAMDHAMANI, TAL. MIRAJ, DIST. SANGLI PAN : AKIPV5234D VS. ITO, WARD-1(1), SANGLI (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASS ED BY THE CIT(A)-1, KOLHAPUR ON 16-10-2017 IN RELATION TO THE ASSESSMENT YEAR 2011-12. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION OF RS.18,58,731/- AS INCOME FROM UNDISCLOSED SOURCES. APPELLANT BY SHRI PRAMOD SHINGTE RESPONDENT BY SHRI S. P. WALIMBE DATE OF HEARING 15-01-2020 DATE OF PRONOUNCEMENT 16-01-2020 ITA NO.2950/PUN/2017 SHANTINATH S. VATHARE 2 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT ASSESSEE FILED ORIGINAL OF INCOME ON 10-10-2012 DECLARING TOTAL INCOME OF RS.1,80,000/-. THIS RETURN WAS PROCESSED U/S. 143(1) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER CALLED THE ACT). THERE AFTER, THE ASSESSEE FILED E-RETURN OF INCOME AS HIS REVISED RETURN ON 26- 03-2013. IN THE REVISED RETURN, THE ASSESSEE DECLARED TOTAL INCOME OF RS.1,46,439/- AND ALSO AGRICULTURAL INCOME OF RS.25,30,000/-. THE E-RETURN FILED ON 26-03-2013 WAS SELECTED FOR SCRUTINY UNDER COMPUTER ASSISTED SCRUTINY SELECTION (CASS) TO VERIFY ON `LARGE AGRICULTURAL INCOME. ASSESSME NT U/S. 143(3) WAS COMPLETED ON 16-12-2013 DETERMINING TOTAL INCOME AT RS.2,80,010/- PLUS AGRICULTURAL INCOME OF RS.25,30,000/-. THE PR. CIT, INVOKING HIS JURISDICTION U/S.2 63 OF THE ACT, SET-ASIDE THE ASSESSMENT ORDER SO PASSE D BY TERMING IT AS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF REVENUE. IN THE SAID ORDER, THE AO WAS DIRECTED TO FIND OUT THE EXTENT OF LAN D ACTUALLY UTILIZED FOR CULTIVATION; ACTUAL EXPENDITURE INCURRED ON CULTIVATION OF TURMERIC AND OTHER CROPS; GENUINENESS OF SA LE BILLS ISSUED BY TRADERS; RECORD OF MARKET YARD COMMITTEE; RECEIPTS OF MARKET YARD TAX; AND WEIGHTMENT SLIPS ETC. THE INSTANT ASSESSMENT WAS COMPLETED U/S. 143(3) R.W.263 OF THE ITA NO.2950/PUN/2017 SHANTINATH S. VATHARE 3 ACT. IN THIS ASSESSMENT, THE AO REQUIRED THE ASSESSEE TO F URNISH THE EVIDENCE AS DIRECTED BY THE LD. CIT IN HIS REVISION ORDER . THE ASSESSEE COULD SUBMIT ONLY PART DETAILS. IN ORDER TO VERIFY THE GENUINENESS OF SALE PATTIS FILED BY THE ASSESSEE FROM THR EE PARTIES LISTED IN PARA 5 OF THE ASSESSMENT ORDER, THE AO ISSU ED SUMMONS. NONE OF THE PARTIES ATTENDED BUT CERTAIN WRITTEN SUBMISSIONS WERE FILED STATING THAT THE DETAILS CALLED FOR WERE NOT AVAILABLE WITH THEM. IN ORDER TO VERIFY THE CLAIM OF THE ASSESSEE THAT HE WAS CULTIVATING LANDS BELONGING TO ALL THE FAMILY MEMBERS AND UTILIZING THE ENTIRE PROCEEDS FOR SELF, T HE AO ISSUED SUMMONS DATED 03-08-2016 TO SUCH FAMILY MEMBERS, NAMELY, SMT. VAISHALI SATISH VATHARA, SHRI SATISH ANNASO VATHARE, SHRI SANTINATH JINNAPPA VATHARE AND SMT. LATABAI SHANTINATH VATHARE FOR ATTENDING HIS OFFICE PERSONALLY ON 11-08-2016. THERE WAS NO COMPLIANCE BY ANY OF THE M. THIS FACT WAS BROUGHT TO THE NOTICE OF ASSESSEE. IN THIS BAC KDROP OF THE FACTS, THE AO DID NOT ACCEPT THE ASSESSEES CLAIM O F HAVING CULTIVATED AND EARNED AGRICULTURAL INCOME THERE FROM AS BELONGING TO OTHER FAMILY MEMBERS. THE AO ESPOUSED THE ASSESSEES SHARE IN THE TOTAL AGRICULTURAL LAND AND BY CONSIDE RING 7/12 EXTRACT, HE DETERMINED THE AMOUNT OF AGRICULTURAL INCOME ITA NO.2950/PUN/2017 SHANTINATH S. VATHARE 4 FROM SALE OF TURMERIC AT RS.6,71,269/-. THE DIFFERENTIAL AMOUNT OF RS.18,58,731/- (RS.25,30,000 RS.6,71,269/-) WA S TREATED AS INCOME FROM OTHER SOURCES AND ADDED TO THE TOTAL INCOME. N O RELIEF WAS ALLOWED IN THE FIRST APPEAL, AGAINST WHICH THE ASSE SSEE HAS COME UP IN APPEAL BEFORE THE TRIBUNAL. 4. I HAVE HEARD THE RIVAL SIDES AND GONE THROUGH THE RELE VANT MATERIAL ON RECORD. THE INSTANT PROCEEDINGS HAVE EMANATED FROM THE REVISIONARY ORDER PASSED U/S 263 OF THE ACT DIREC TING THE AO TO EXAMINE THE VERACITY OF THE CLAIM OF THE ASSESSEE QUA THE AGRICULTURAL INCOME SHOWN AT RS.25.30 LAKH. THE LD. AR ADMITTED THAT THE ASSESSEE ACCEPTED SUCH AN ORDER AND DID N OT CHALLENGE THE SAME BEFORE THE TRIBUNAL. NOW THE ONLY QUESTION IS TO EXAMINE THE GENUINENESS OF THE CLAIM OF AGRICULTURAL INCOME SHOWN BY THE ASSESSEE IN THE RETURN. THE ASSESSE E MADE OUT A CLAIM OF HAVING EARNED AGRICULTURAL INCOME OF RS.25.3 0 LAKH FROM CERTAIN LAND BELONGING TO HIM AND 4 OTHER FAMILY MEMBERS. THE AO ISSUED SUMMONS TO ALL SUCH FAMILY MEMBERS, WHICH REMAINED UNRESPONDED. THIS FACT WAS BRO UGHT TO THE NOTICE OF ASSESSEE. THE ASSESSEE FAILED TO PRODUCE ANY EVIDENCE TO DEMONSTRATE THAT HIS FOUR FAMILY MEMBERS HAD FOREGONE THEIR RESPECTIVE SHARES IN THE AGRICULTURAL INCOME AN D ITA NO.2950/PUN/2017 SHANTINATH S. VATHARE 5 PERMITTED HIM TO CULTIVATE THE LAND AND RETAIN THE ENTIRE EARNINGS THEREFROM FOR SELF. THUS, THE CLAIM OF THE ASSESSEE THAT HE EARNED AGRICULTURAL INCOME OF RS.25.30 LAKH FROM THE ENTIRE LAND, WHICH ALSO INCLUDED THE SHARE OF OTHER FOUR FAMILY MEMBERS, HAS NOT BEEN ESTABLISHED. THE AO TOOK UP THE ASSESSEES ACTUAL SHARE IN THE LAND AT 0.89 R. BY EXAMINING 7/12 EXTRACT, HE ESTIMATED THE AGRICULTURAL INCOME AS UNDER : 1. HECTARE 0.89 X 75 (AS PER AGRI. OFFICER MIRAJS REPORT) = 66.75 QUINTAL 2. AVERAGE RATE : RS.14 PER KG = RS.9,34,500/- 3. ESTIMATED EXPENDITURE : 30% = RS.2,80,350/- 4. NET INCOME : RS.6,54,150/- 5. INCOME FROM SUGARCANE RECEIPTS RS.24,456/- EXPENDITURE 30% RS. 7,337/- ------------- RS.17,119/- 6. NET AGRI. INCOME RS.6,71,269/- 5. IT IS EVIDENT FROM THE ABOVE CALCULATION THAT THE AO CALCULATED THE ASSESSEES AGRICULTURAL INCOME BY TAKING HIS ACTUAL SHARE IN LAND AND THE CROP THEREON AS PER 7/12 EXTRA CT AS MULTIPLIED BY SALE PRICE OF TURMERIC AS PER AGRICULTURAL OFFICE R, MIRAJS REPORT. AFTER ALLOWING DEDUCTION @ 30% OF EXPENSES , HE ESTIMATED NET AGRICULTURAL INCOME AT RS.6,71,269/-. NO INFIRMITY IN SUCH CALCULATION HAS BEEN POINTED OUT ON BEHALF OF THE ASSESSEE. IN MY CONSIDERED OPINION, THE AO WAS FULLY ITA NO.2950/PUN/2017 SHANTINATH S. VATHARE 6 JUSTIFIED IN DETERMINING THE AGRICULTURAL INCOME TO THIS EXTENT AND IN MAKING AND TREATING THE REMAINING AMOUNT OF RS.18,58,731/- AS INCOME FROM OTHER SOURCES. I, T HEREFORE, UPHOLD THE IMPUGNED ORDER. 6. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH JANUARY, 2020. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 16 TH JANUARY, 2020 SATISH / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-1, KOLHAPUR 4. THE PR. CIT-1, KOLHAPUR 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.2950/PUN/2017 SHANTINATH S. VATHARE 7 DATE 1. DRAFT DICTATED ON 15-01-2020 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 16-01-2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -- JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -- JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *