Kanabhai Laxmanbhai Ahir, RAJKOT-GUJARAT V. The Income Tax Officer, Ward-2(2), RAJKOT-GUJARAT

ITA 358/RJT/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0181 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 2 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 05-06-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: CHHATRE
• Assessee Lawyers: M.J. RANPURA
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT [CONDUCTED THROUGH E COURT AT AHMEDABAD] BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA.NO.358/RJT/2014 / ASSTT. YEAR: 2009-2010 KANABHAI LAXMANBHAI AHIR SANJAY AND COMPANY PREMJEES, FIRST FLOOR, RAJPUT PARA MAIN ROAD RAJKOT 360 001. PAN : AECPA 2885 D. VS ITO, WARD - 2(2) RAJKOT. ! / (APPELLANT) '# ! / (RESPONDENT) ASSESSEE BY : SHRI M.J. RANPURA, AR REVENUE BY : SHRI D.R. CHHATRE, SR.DR / DATE OF HEARING : 23/08/2016 / DATE OF PRONOUNCEMENT: 24/08/2016 $%/ O R D E R PER BENCH : THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAIN ST THE ORDER OF THE LD.CIT(A)-III, RAJKOT DATED 29/3/2014 PASSED FOR TH E ASSTT.YEAR 2009-2010. 2. SOLITARY GRIEVANCE OF THE ASSESSEE IS THAT THE L D.CIT(A) HAS ERRED IN CONFIRMING THE ADDITION MADE BY THE AO AT 30% OF TH E TOTAL AGRICULTURE INCOME DISCLOSED BY THE ASSESSEE. 3. WITH THE ASSISTANCE OF THE LD.DR, WE HAVE GONE T HROUGH THE RECORD CAREFULLY. IT EMERGES OUT FROM THE RECORD THAT THE ASSESSEE HAS DISCLOSED AN INCOME OF RS.4,97,530/-. HE DISCLOSED AGRICULTURE INCOME OF RS.4,85,205/-. HE DEBITED EXPENDITURE OF RS.38,612/- TOWARDS AGRIC ULTURE EXPENSES. HE HAS ITA NO.358/RJT/2014 2 ALSO SHOWN AGRICULTURE LOAN INTEREST AT RS.8,813/-. THE LD.AO WAS NOT SATISFIED WITH THE MEAGER EXPENDITURE SHOWN BY THE ASSESSEE FOR GENERATING AGRICULTURE INCOME AT RS.4,85,205/-. HE TOOK GUIDA NCE FROM THE ORDER OF THE ITAT IN THE ASSTT.YEAR 2003-04 IN ITA NO.158/RJT/20 07 AND ASSUMED THAT THE ASSESSEE MUST HAVE INCURRED EXPENDITURE OF 30% OF TOTAL INCOME DISCLOSED BY HIM FROM AGRICULTURE ACTIVITIES. ACCORDINGLY, H E MADE ADDITION OF RS.98,157/- TO THE TOTAL INCOME OF THE ASSESSEE. A PPEAL TO THE LD.CIT(A) DID NOT BRING ANY RELIEF TO THE ASSESSEE. 4. ON DUE CONSIDERATION OF ALL THE FACTS AND CIRCUM STANCES, WE ARE OF THE VIEW THAT AN AGRICULTURIST CANNOT BE EXPECTED TO MA INTAIN DETAILS OF EXPENDITURE/EXPENSES IN AN ORGANIZED MANNER. WHENE VER SUCH TYPE OF ISSUE WOULD FALL FOR CONSIDERATION, ADJUDICATOR WOULD ALW AYS APPLY SOME THUMP RULE AND ESTIMATE THE EXPENDITURE. THE ELEMENT OF GUESS -WORK WOULD ALSO BE INVOLVED. ACCORDING TO THE ASSESSEE, HE HAS INCURR ED ONLY RS.38,612/- TOWARDS AGRICULTURE EXPENSES. WE DO NOT KNOW WHAT TYPE OF AGRICULTURE OPERATIONS HE HAS CARRIED OUT. WHAT TYPE OF AGRICU LTURE LAND HE HAS. WHETHER HE TOOK HELP OF LABOURERS OR HE HIMSELF CARRIED OUT AGRICULTURE OPERATIONS. FACED WITH ALL THESE DIFFICULTIES, WE ARE OF THE VI EW THAT ESTIMATION MADE BY THE AO AT 30%, WHICH WAS WORKED OUT IN SOME PAST YE ARS CANNOT BE A SOLE GUIDING FACTOR. TAKING A PRAGMATIC APPROACH, WE RE STRICT THIS DISALLOWANCE TO 15% (FIFTEEN PER CENT). THUS, THE APPEAL OF THE AS SESSEE IS PARTLY ALLOWED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 24 TH AUGUST, 2016 AT AHMEDABAD. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 24/08/2016