Shri Balappa Hanamantappa Nandeppanavar, Bagalkot V. Income-Tax officer-Ward-1, Bagalkot

ITA 3428/BANG/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8176 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 16-01-2020
• Assessment Year: 2009-2010
• Appeal Filed On: 28-12-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S TAMIL SELVAM
• Keywords: TDS
• Section: 201; 69A; 28

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH ES : B , BANGALORE BEFORE SHRI N.V.VASUDEVAN, VICE PRESIDENT AND S HRI A.K.GARODIA, A CCOUNTANT MEMBER ITA NO. 3428 (BANG)/ 20 1 8 ( ASSESSMENT YEAR : 20 09 - 10 ) SHRI BALALAPPA HANAMANTAPPA NANDEPPANAVAR, AT PO: JAMMANKATTI VILLAGE TQ.BADAMI, DIST.BAGALKOT - 587 205. PAN NO. A C TPN7914K APPELLANT VS THE INCOME TAX OFFICER , W A R D - 1, NAVANAGAR, BAGALKOT - 587 103 RESPONDENT APPELLANT BY : NONE RE VENUE BY : SHRI S.TAMIL SELVAM, J C IT DATE OF HEARING : 1 6 - 01 - 2020 DATE OF PRONOUNCEMENT : 22 - 01 - 2020 O R D E R PER SHRI N.V.VASUDEVAN, VICE PRESIDENT : THIS IS AN A PPEAL BY T HE AS S ESSEE AG AINST THE ORDER D A TED 0 6 - 0 9 - 201 8 PASSED BY THE CIT (A) , BE L AG A VI, RELATING TO ASSESSMENT YEAR 20 0 9 - 10 . 2. NOTICE OF HEARING OF THIS APPEAL FOR 06 - 01 - 2020 WAS DULY SERVED ON TH E ASSESSEE AND COPY OF THE ACKNOWLEDGEMENT IS PLACED ON RECORD. WHEN THE ITA NO.3428(B)/2018 2 CASE OF WAS CALLED NONE APPEARED ON BEHALF OF THE AS S ESSEE. UNDER THE ABOVE CIRCUMSTANCES, WE PROCEED TO DECIDE THE APPEAL EX - PARTE ON M E RITS. 3. THE ONLY ISSUE THAT ARISES FOR CONSIDERATION IN THIS APPEAL IS WITH REGARD TO ADDITION MADE ON ACCOUNT OF UNEXPLAINED CASH DEPOSITS IN THE BANK ACCOUNT. THE ASSESSEE HA D A BANK ACCOUNT WITH CORPORATION BANK, BEARING SB A/C NO.01/000649 IN WHICH DURING THE PERIOD 01 - 04 - 2008 TO 31 - 03 - 2009 C A SH TOTALING RS.15,38,600/ - HAS BEEN DEPOSITED ON VARIOUS DATES. THE ASSESSEE COULD NOT EXPLAIN THE SOURCE OF CASH OUT OF WHICH CASH DEPOSITS WERE MADE. THE AO GAVE CREDIT WITH REGARD TO INCOME FROM AGRICULTURE TO THE TUNE OF RS.3,49,486/ - WHICH WAS CLAIMED TO BE SOU RCE OF FUNDS OUT OF WHICH CASH WAS DEPOSITED IN THE BANK ACCOUNT. THE AO BROUGHT TO TAX THE REMAINING SUM OF RS.11,89,114/ - AX UNEXPLAINED MONEY U/S 69A OF THE I NCOME T AX ACT , 1961 (ACT) . ONE OF THE EXPLANATION GIVEN BY THE ASSESSEE BEFORE THE AO WAS THA T THE ASSESSEE HAD PURCHASED A RIG BOREWELL VEHICLE FOR A SUM OF RS.30.00 LAKHS FROM A PERSON IN TAMIL NADU AND THIS SUM OF RS.30.00 LAKHS WAS RECEIVED BY THE ASSESSEE AS HAND LOAN FROM HIS FRIEND, WH O ARE AGRICULTURI STS OUT OF THEIR AGRICULTURE INCOME. A SSESSEE CLAIMED THAT THE VEHICLE WAS RE - SOLD TO RS.28.00 LAKHS TO THE SAME PERSON WHOM THE RIG BOREWELL VEHICLE WAS PURCHASED. SINCE NO EVIDENCE WAS FURNISHED TO SUBSTANTIATE THE AFORESAID CLAIM OF THE ASSESSEE, THE AO REJECTED THE CLAIM OF THE ASSESSEE. 4. ON APPEAL BY THE ASSESSEE, LD.CIT(A) CONFIRMED THE ORDER OF THE AO, BUT GAVE FURTHER CREDIT TO AGRICULTURAL INCOME TO THE EXTENT OF RS.2.00 LAKHS. THE FOLLOWING WERE THE RELEVANT OBSERVATIONS OF THE LD.CIT(A). 7. THE APPEAL WAS POSTED FOR HEARING ON 19 - 07 - 2018, 07 - 08 - 2018 & 29 - 08 - 2018 SHRI KUMAR S.JIGAJINNI, CA ATTEND THE HEARING AND SUBMITTED A WRITTEN SUBMISSION DATED 17 - 09 - 2018. ITA NO.3428(B)/2018 3 8. I HAVE CAREFULLY CONSIDERED THE FACTS OF THE C A S E, THE SUBMISSIONS MADE BY THE APPELLANT AND THE ASSESSMENT ORDER PAS SED BY THE AO. 9. ASSESSEE CL A IMS 80 ARE OF LAND IS AVAILABL E FOR FAMILY. BUT AS S ES S EE OWN S ABOUT 20 ACRES OF AGRICULTURAL LAND IN HIS INDIVIDUAL NAME. AR STATED THAT A LMOST 50% IS SUGAR CANE CULTIVATED AND IN THE REMAINING LAND OTHER CR O PS ARE GROWN. AO HAS ALREADY CONSIDERED INCOME FROM SUGAR CAN E IN THE ASSESSMENT. CONSIDERING THE NATURE OF AGRICULTURE, ABOUT 20,000/ - A C R E IS ESTIMATED AS THE NET SURPLUS INCOME TOWARDS SOURCES FOR DEPOSITS. CONSIDERING THE FACTS AND CIRCUMSTANCES, ON 10 ACRES OF LAN D, RS.2,00,000/ - IS TO BE TREATED AS INCOME FROM AGRICULTURAL SOURCES AND THE BALAN C E OUT OF TOTAL ADDITION MADE BY THE AO IS CONFIRMED. THUS, A RELIEF OF RS.2,00,000/ - IS GIVEN AND BALANCE AMOUNT (RS.11,89,114 - RS.2,00,000) OF RS.9,89,114/ - IS CONFIRMED. 5. AGGRIEVED BY THE ORDER OF LD.CIT(A) ASSESSEE HAS FILED THE PRESENT A PPE A L BEFORE THE TRIBUNAL. IN THE GROUNDS OF APPEAL, THE ASSESSEE HAS STATED A FOLLOWS; THE LD. A O HAS ERRED BY ADDING THE TOTAL CASH DEPOSIT TO CORPORATION BANK SB A/C N O .01000649 DURING THE FY: 2008 - 09 RS.15,38,600/ - BY GIVING RELIEF OF AGRICULTURAL INCOME OF RS.3,49,486/ - AND ADDED RS.11,89,114/ - TO RETURNED INCOME. LATER AGAINST THE SAID ORE RAPPEL IS FILED TO CIT(A) BELAGAVI AND THE LD.CIT(A) HAS ALSO ERRED & ALLOWED ONLY RS.2 ,00,000/ - FURTHER AGRICULTURAL INCOME RELIEF. I.E.RS.11,89,114/ -- RS.2,00,000=RS.9,89,114/ - ADDITIONS CONFIRMED. AGAINST THE SAME ORDER THIS APPEAL IS PREFERRED. THE APPELLANT IS HAVING SB A/C WITH STATE BANK OF INDIA BADAMI BRANCH VIDE ACCOUNT NO.10810 290137. ON 19.09.2008 R S .12.50 LAKHS CHEQUE PAID TO BOREWELL MANUFACTURER STAYING AT TAMILNADU . LATER T HE SAME VEHICLE HAS BEEN SOLD TO HIM ONLY FOR RS.12.50 LAKHS. THE TAMILNADU PARTY HAS GIVEN CHEQUE FOR THE SAID AMOUNT. THE SAID CHEQUE IS PRESENTED IN CORPORATION SB ACCOUNT ON 28 - 01 - 2009 AND THE SAID CHEQUE HAS BEEN DISHONOURED ITA NO.3428(B)/2018 4 ( COPY OF BOTH THE BANK STATEMENT IS ENCLOSED) LATER THE SAID PARTY HAS GIVEN CASH & THE SAID CASH HAS BEEN RE - DEPOSITED IN CORPORATION BANK SB ACCOUNT NO.01000 649 1. ON 20 - 02 - 2009 RS.9,00,000/ - 2. ON 21 - 03 - 2009 RS.2,00,000/ - WITHOUT VERIFYING THE GENUINENESS OF THE TRANSACTION THE LD.AO MADE THE OUTRIGHT ADDITIONS. 6. NONE APPEARED ON BEHALF OF THE ASSESSEE. COPY OF BANK STATEMENT AS STATED IN THE GROUNDS O F APPEAL WAS NOT FILED BEFORE THE TRIBUNAL AS NO SUCH DOCUMENT IS ON RECORD OR WAS FILED. THE LD.DR SUBMITTED THAT THE PLEA OF THE ASSESSEE AS RAISED IN THE GROUNDS OF APPEAL WERE NOT S UPPORTED BY A NY EVIDENCE AND THEREFORE, THE ORDER OF LD.CIT(A) MAY BE CONFI R MED. 7. WE HAVE CONSIDERED THE SUBMISSIONS MADE BY THE LD.DR AND ARE OF THE VIEW THAT THE PLEA OF THE ASSESSEE IS NOT ONLY CONTRARY TO THE PLEA AS WAS PUT FORTH BEFORE THE LOWER AUTHORITIES NOR WAS ANY EVIDENCE FILED TO SUBSTANTIATE THE CLAIM OF THE ASSESSEE AS STATED IN THE GROUNDS OF APPEAL. WE HOWEVER FIND THAT THE TOTAL EXTENT OF AGRICULTURAL LAND OWNED BY TH E ASESSEE AS PER THE ORDER OF THE LD. CIT(A) WAS 20 ACRES. OUT OF THIS 50% OF THE LAND IS UNDER SUGAR CANE CULTIVATION AND OUT OF WHICH THE INCOME WAS DETERMINED BY THE AO AT A SUM OF RS.3,49,486/ - . THE REMAINING 10 ACRES IS STATED TO HAVE BEEN USED FOR GR OWING OTHER CROPS FOR WHICH THE LD.CIT(A) HAS ESTIMATED INCOME AT RS.2.00 LAKHS. WE ARE OF THE VIEW THAT CONSIDERING THE TOTAL EXTENT OF AGRICULTURAL LAND OWNED BY THE ASSESSEE AND THE FACT THAT THE INCOME FROM SUGARCANE CROP HAS BEEN ESTIMATED AT RS.3,49 ,486/ - AND TAKING INTO CONSIDERATION THE OTHER CIRCUMSTANCES OF THE CASE, IT WOULD BE JU S T AND APPROPRIATE TO ESTIMATE THE INCOME FROM AGRICULTURAL AT A SUM OF R S.7.00 LAKHS. THE TOTAL CASH DEPOSITS IN THE BANK ACCOUNT I.E RS.15,75,613/ - . THE TOTAL AGRI CULTURE INCOME ACCEPTED IS RS. 7.00 THEREFORE, ITA NO.3428(B)/2018 5 THE ADDITION ON ACCOUNT OF UNEXPLAINED CA S H DEPOSITS IN BANK ACCOUNT SHOULD BE RESTRICTED TO A S UM OF RS.8,38,600/ - . WE HOLD A ND DIRECT ACCORDINGLY A ND ALLOW THE APPEAL OF THE ASSESS E E I N PART. 7. IN THE RESULT, THE APPEAL OF THE ASSE S SEE IS PA RT LY ALLOWED. O RDER PRONOUNCED IN THE OPEN COURT ON 22 ND J ANUARY, 2020 SD/ - SD/ - ( A.K.GARODIA ) ( N.V.VASUDEVAN ) ACCOUNTANT MEMBER VIC E PRESIDENT PLACE: BANGALORE DATED: 22 - 01 - 2020 *AM COPY OF THE ORDER FORWARDED TO: 1.APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5. DR 6. ITO (TDS) 7.GUARD FILE BY ORDER ASST. REGISTRAR , INCOME TAX APPELLATE TRIBUNAL, BANGALORE. ITA NO.3428(B)/2018 6