Shri Jashbhai Ramanbhai Patel, (HUF), Anand V. The Income Tax Officer, Ward-3(3), Petlad

ITA 3286/AHD/2014

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9055 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 09-12-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S K DEV
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER SHRI JASHBHAI RAMANBHAI PATEL (HUF), GANDHI POLE, ASHI - 388130, DIST: ANAND PAN: AACHP2957B (APPELLANT) VS THE IT O , WARD - 3(3) , PETLAD (RESPONDENT) REVENUE BY : S H RI S.K. DEV , SR. D . R. ASSESSEE BY: SHRI ASEEM THAKKAR, A.R. DATE OF HEARING : 26 - 11 - 2 018 DATE OF PRONOUNCEMENT : 10 - 12 - 2 018 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS ASSESSEE S APPEAL FOR A. Y. 20 11 - 12 , ARI SES FROM ORDER OF THE CIT(A) - I, BARODA DATED 17 - 10 - 2 014 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE SOLITARY GROUND OF APPEAL O F THE ASSESSEE IS PERTAINED TO ADDITION OF RS. 4 , 55 , 235/ - MADE BY TH E ASSESSING OFFICER BY ESTIMATING THE AGRICULTURAL EXPENSES PERTAINING TO THE AGRICULTURAL INCOME SHOWN BY THE ASSESSEE. 3. THE FACT IN BRIEF IS THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS U/S. 143(3) OF THE ACT, THE ASSESSING OFFICER NOTICED THAT A SSESSEE HAS SHOWN I T A NO . 3286 / A HD/20 14 A S S ESSMENT YEAR 2011 - 12 I.T.A NO. 3286 /AHD/20 14 A.Y. 2011 - 12 PAGE NO SHRI JASHBHAI RAMANBHAI PATEL (HUF) VS. IT O 2 AGRICULTURAL INCOME OF RS. 22 , 2 2, 50 0 / - DURING THE YEAR UNDER CONSIDERATION. THE ASSESSING OFFICER HAS ASKED THE A SSESSE TO EXPLAIN WH Y AGRICULTURAL EXPENSES OF 40% OF THE GROSS AGRICULTURAL INCOME OF RS. 2 7 , 9 6 , 483/ - SHOULD NOT BE ADDED TO TH E TOTAL INCOME OF THE ASSESSEE. AFTER VERIFICAT ION O F THE DETAIL FILED BY T H E ASESSEE, THE ASSESSING OFFICER OBSERVED THAT ASSESSEE MIGHT HAVE INCURRED EXPENSES IN THE FORM OF LABOUR, WATER, FERTILIZER ETC , FOR EARNING GROSS AGRICULTURAL INCOME TO THE AMO UNT OF RS. 27 , 9 6 , 483 DURING THE YEAR UNDER CONSIDERATION. HE WAS OF THE OPINION THAT TO GET MORE YIELDS IT IS REQUIRED MORE UTILIZATION OF WATER, FERTILIZER AND LABOUR ETC. HE HAS ALSO STATED THAT ASSESSEE HAS ALSO NOT SUBMITTED RELEVANT SUPPORTING EVIDE NCES WITH REG ARD TO TAKING AGRICULTURAL LAND ON RENT AND PROOF OF PAYMENT OF RENT ETC. THEREFORE, FOR WANT OF MATERIAL DOCUMENT TO SUPPORT THE CLAIM OF EXPENSES INCURRED FOR EARNING AGRICULTURAL INCOME , THE ASSESSING OFFICER HAS TREATED 40% OF GROSS AGRIC ULTURAL INCOME AS EXPENSES INCURRED BY THE ASSESSEE FOR EARNING THE SAID AGRICULTURAL INCOME . 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE US, THE LD. COUNSEL HAS REITER ATED T H E SUBMISSION MADE BEFORE THE ASSESSING OFFICER AND THE LD. CIT(A) DURING THE COURSE OF ASSESSMENT PROCEEDINGS AND APPELLATE PROCEEDINGS THAT HE ASSESSE WAS HAVING FERTILE AGRICULTURAL LAND WHICH WAS VERY GOOD FOR TOBACCO CROP. HE HAS ALSO REFERRED THE PREV IOUS ASSESSMENT ORDER FOR ASSESSMENT YEAR 2008 - 09 IN WHICH THE INCOME SHOWN BY THE ASSESSEE WAS ACCEPTED U/S. 143(3) OF THE ACT BY THE ASSESSING OFFICER. HE HAS ALSO PLACED COPY OF P & L A/C IN SUPPORT OF HIS CLAIM THAT DIRECT EXPENSE S OF R S. 5 , 73 , 982/ - W ERE MADE AGAINST GROSS AGRICULTURAL INCOME OF RS. 27, 9 6,483/ - DURING THE YEAR UNDER CONSIDERATION. HOWEVER, WE OBSERVE THAT THE ASSESSEE HAS NOT FURNISHED SPECIFIC EVIDENCES I.E. PAYMENT OF LAND RENT AND AGREEMENT FOR OBTAINING LAND ON RENT AND OTHER SUPP ORTING RELEVANT EVIDENCES WITH REGARD TO AGRICULTURAL EXPENSES. IN THE LIGHT OF THE ABOVE FACTS AND CIRCUMSTANCES AFTER CONSIDERING THE SPECIFIC FACTS IN THE CASE OF THE ASSESSEE, WE ARE OF THE VIEW THAT IT WILL BE APPROPRIATE TO RESTRICT THE I.T.A NO. 3286 /AHD/20 14 A.Y. 2011 - 12 PAGE NO SHRI JASHBHAI RAMANBHAI PATEL (HUF) VS. IT O 3 DISALLOWANCE OF AGRICULTURAL EX PENSES @ 30% AS AGAINST 40% DISALLOWANCE MADE BY THE ASSESSING OFFICER. THEREFORE, WE DIRECT THE ASSESSING OFFICER TO RESTRICT THE DISALLOWANCE OF AGRICULTURAL EXPENSES @ 30% OF GROSS AGRICULTURAL INCOME AS MENTIONED ABOVE. ACCORDIN GLY, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 10 - 12 - 201 8 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL ME MBER ACCOUNTANT MEMBER AHMEDABAD : DATED 10 /12 /2018 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORD ER/ , / ,