Pralhadgouda K.Patil , Gadag V. Income Tax Officer Ward-2 , Gadag

ITA 3205/BANG/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7162 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 29-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KARUPPASWAMY S R
• Assessee Lawyers: MRINALINI R
• Section: 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH C SMC BEFORE SHRI N.V VASUDEVAN, VICE PRESIDENT ITA NO.3205/BANG/2018-19 ASSESSMENT YEAR : 2014- 15 SRI PRALHADGOUDA K PATIL, LAND LORD, HULKOTI, GADAG DIST. PAN AAHHP 5981 N . VS. THE INCOME-TAX OFFICER, WARD-2, GADAG. APPELLANT RESPONDENT APPELLANT BY : MS. MRINALINI R, ADVOCATE RESPONDENT BY : SHRI KARUPPASWAMY S.R, ADDL. CIT DATE OF HEARING : 17.12.2018 DATE OF PRONOUNCEMENT : 11.01.2019 O R D E R PER SHRI N.V VASUDEVAN, VICE PRESIDENT : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST T HE ORDER DATED 28/9/2018 OF CIT(A), HUBALLI RELATING TO ASST. YE AR 2015-16. 2. THE ASSESSEE IS AN INDIVIDUAL AND HE FILED RETUR N OF INCOME FOR ASST. YEAR 2015-16 DECLARING INCOME FROM BUSINESS O F DEALING IN CEMENT AND AGRICULTURAL INCOME. THE AGRICULTURAL INCOME DECLARED BY THE ASSESSEE WAS SUM OF RS.21 LAKHS. THE GROSS AGR ICULTURAL INCOME ITA NO.3205/B/18 2 EARNED BY THE ASSESSEE WAS 22,00,810/-. CONSIDERING THE GROSS AGRICULTURAL INCOME, THE AO WANTED THE DETAILS OF A GRICULTURAL EXPENSES AND EVIDENCE IN SUPPORT OF AGRICULTURAL EX PENSES. SINCE THE SAME WAS NOT FILED, THE AO ADDED RS.2,50,000/- AS I NCOME FROM OTHER SOURCES. IT APPEARS THAT THE ASSESSEES REPRESENTA TIVE ALSO ACCEPTED THE ADDITION BEFORE THE AO. NEVERTHELESS, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A) CHALLENGING THE AFORESAID ADDITIO N AND THE APPEAL OF THE ASSESSEE WAS DISMISSED FOR NON PROSECUTION AS N ONE APPEARED ON THE VARIOUS DATES OF HEARING BEFORE THE CIT(A). 3. AGGRIEVED BY THE ORDER OF THE CIT(A), THE ASSESS EE HAS FILED PRESENT APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS. FROM A PER USAL OF ORDER OF ASSESSMENT, IT IS CLEAR THAT THE AO HAS ACCEPTED AGRICULTURAL INCOME DECLARED BY THE ASSESSEE. THE DETAILS OF EXPENSES INCURRED IN CARRYING OUT AGRICULTURAL ACTIVITIES WAS DISBELIEVED TO THE TUNE OF RS.2,50,000/-. IN SUCH CIRCUMSTANCES, THE AO CANNOT TREAT THE EXPE NSES WHICH WERE NOT SUBSTANTIATED BY THE ASSESSEE AS INCOME FROM OT HER SOURCES. SUCH AN ADDITION IF AT ALL CAN BE MADE ONLY U/S 69 OR 69 C OF THE ACT. UNLESS AGRICULTURAL INCOME DECLARED BY AN ASSESSEE IS EXPL AINED AS SOURCE FOR ANY INVESTMENT OR OTHERWISE, WHEN AGRICULTURAL INCOME IS NOT BELIEVED TO HAVE BEEN EARNED BY THE ASSESSEE, NO AD DITION UNDER DEEMING PROVISIONS OF THE ACT CAN BE MADE. IN THE PRESENT CASE, THE ASSESSEE HAS NOT SOUGHT TO EXPLAIN AGRICULTURAL INC OME AS SOURCE FOR ANY INVESTMENT OR OTHERWISE. SINCE AGRICULTURAL IN COME WAS OUTSIDE ITA NO.3205/B/18 3 THE PURVIEW OF TAXATION UNDER CHAPTER III OF THE AC T, THE ABSENCE OF EVIDENCE REGARDING EXPENDITURE CAN ONLY LEAD TO CON CLUSION THAT THE AGRICULTURAL INCOME DECLARED BY THE ASSESSEE AT RS. 21 LAKHS SHOULD BE DECREASED TO THE EXTENT OF RS.2,50,000/-. IT CANN OT BE BY ANY STRETCH OF IMAGINATION BE TREATED AS INCOME FROM OTHER SOUR CES. THE ADDITION MADE IS WITHOUT ANY BASIS AND, THEREFORE THE SAME D ESERVES TO BE DELETED AND IS HEREBY DELETED. 5. IN THE RESULT, APPEAL BY THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH JANUARY, 2019 . SD/- (N.V VASUDEVAN) VICE PRESIDENT BANGALORE DATED : 11/01/2019 VMS COPY TO :1. THE ASSESSEE 2. THE REVENUE 3.THE CIT CONCERNED. 4.THE CIT(A) CONCERNED. 5.DR 6.GF BY ORDER ASST. REGI STRAR, ITAT, BANGALORE ITA NO.3205/B/18 4 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR. P. S ... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE .. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT.. 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER . 13. DATE OF DESPATCH OF ORDER. ..