Shri Bhimbhai Rambhai Jadeja, JUNAGADH V. The Income Tax Officer, Ward-1(2), JUNAGADH

ITA 391/RJT/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6725 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 7 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 16-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PJ P S S
• Section: 142(1)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [ CONDUCTED THROUGH E-COURT AT AHMEDABAD ] BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER (1). ./ I.T.A. NO.391/RJT/2014 ( / ASSESSMENT YEAR : 2009-10) SHRI BHIMBHAI RAMBHAI JADEJA 25-A, KALYAN NAGAR SOCIETY, COLLEGE ROAD, JUNAGADH. / VS. THE INCOME-TAX OFFICER WARD-1(2) - JUNAGADH ./ ./ PAN/GIR NO. : ABYPJ 8653 P ( / APPELLANTS ) .. ( / RESPONDENTS ) ASSESSEE BY : SHRI. PRAVIN VERMA, SR. D.R. REVENUE BY : SHRI. R. D. LALCHANDANI, A.R. / DATE OF HEARING 01/02/2017 / DATE OF PRONOUNCEMENT 07/02/2017 / O R D E R PER SHRI MAHAVIR PRASAD, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE APPELLANT-ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-IV, RAJKOT, DATED 28/04/2014 FOR THE ASSESSMENT YEAR (AY) 2009-10. ASSESSEE/APPELLANT HAS BEEN TAKEN FOLLOWING GROUND OF APPEAL: THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.1,67,460/- AS BEING NON AGRICULTURE INCOME. ITA NO. 391/RJT/2014 SHRI BHIMBHAI RAMBHAI JADEJA VS. THE ITO ASST.YEARS 2009-10 - 2 - 2. THE FACTS OF THE CASE ARE DURING THE COURSE OF ASSESSMENT PROCEEDING, ON VERIFICATION OF AGRICULTURE INCOME ACCOUNT, THE ASSESSEE HAS CLAIMED EXCESS YIELD OF WHEAT 20,927 KG. ON THE AGRICULTURE LAND SITUATED AT VILLAGE MALIDA AND CLAIMED IT SALE PROCEED AS AGRICULTURE INCOME. THIS BEING THE FACT, A SHOWN CAUSE NOTICE WAS SERVED: PLEASE REFER TO THE ABOVE SUBJECT AND HEARING TOOK PLACE ON VARIOUS DATES IN RESPECT OF SCRUTINY ASSESSMENT PROCEEDINGS FOR ABOVE MENTIONED ASSESSMENT YEAR IN YOUR CASE. ON VERIFICATION OF THE AGRICULTURE INCOME ACCOUNT, IT IS SEEN THAT YOU CLAIMED TO HAVE CULTIVATED WHEAT ON 4.89 VIGHA (1.96) ACRE LAND. THE MAXIMUM YIELD OF WHEAT PER VIGHA IS 700 KG. AS PER THE CERTIFICATE OF AGRICULTURE UNIVERSITY OF JUNAGADH. CONSIDERING THIS OPINION THE MAXIMUM YIELD OF WHEAT THAT CAN BE ACHIEVED ON 4.89 VIGHA IS CALCULATED AT 3423 KG. YOUR CLAIM OF PRODUCING AND SELLING 24350 KG. WHEAT IS FOUND EXCESSIVE BY 20927 KG. I, THEREFORE, PROPOSE TO TREAT THE VALUE OF 20927 KG. WHEAT I.E. RS.1,67,416/- AS YOUR INCOME FROM UNDISCLOSED SOURCE AND TO MAKE AN ADDITION OF RS.1,67,416/- IN THE RETURN INCOME. IF YOU WISH TO CONFRONT THIS ADDITION, PLEASE SUBMIT YOUR EXPLANATION / OBJECTION TO THE UNDERSIGNED WITHIN 7 DAYS WITH EVIDENCE TO THE SATISFACTION OF THE UNDERSIGNED OF THE RECEIPT OF THIS LETTER. PLEASE NOTE THAT IF NO EXPLANATION IS RECEIVED BY THIS TIME, THE ASSESSMENT WILL BE FINALIZED ACCORDINGLY. PLEASE TREAT THIS LETTER AS NOTICE U/S. 142(1) OF THE I.T. ACT, 1961. 3. IN RESPONSE TO THE SHOW CAUSE NOTICE, THE ASSESSEE VIDE HIS REPLY DTD. 20.12.2011 SUBMITTED A CERTIFICATE OF GRAM PANCHAYAT OFFICE, MALIDA STATING THEREIN THAT THE ASSESSEE, SHRI BHIMBHAI RAMBHAI IS HOLDING 3.61.59 HECTARE AGRICULTURE LAND AT VILLAGE MALIDA AND CULTIVATED WHEAT ON ENTIRE LAND DURING F.Y. 2008-09. HOWEVER ON VERIFICATION OF FORM ITA NO. 391/RJT/2014 SHRI BHIMBHAI RAMBHAI JADEJA VS. THE ITO ASST.YEARS 2009-10 - 3 - NO.7/12 (E-GENERATED) SUBMITTED BY THE ASSESSEE, IT IS SEEN THAT THE ASSESSEE HAS CULTIVATED WHEAT ON 0.2748 HECTARE LAND OF SL. NO.104/1 AND 0.5176 HECTARE LAND SITUATED AT SL. NO. 105 PAIKI 1 DURING F.Y. 2007-08 FOR F.Y. 2008-09 THERE DOES NOT APPEAR ANY DETAILS OF CULTIVATION DURING WINTER (RAVI) SEASON. HOWEVER, LOOKING TO THE PREVIOUS YEARS DATA, THE CULTIVATION OF WHEAT DURING F.Y. 2008-09 ON LAND STATED ABOVE IS CONSIDERING. ON THIS LAND THE YIELD THAT CAN BE ACHIEVED IS ESTIMATED AS UNDER: AVERAGE YIELD PER HECTARE 3702 KG. ADD:- 20% INCREASE AS THE ASSESSEE IS HAVING IRRIGATION FACILITY 740 KG. ESTIMATED YIELD 4442 KG. 4. IN VIEW OF THE CALCULATION, THE YIELD OF WHEAT THAT CAN BE ACHIEVED ON 0.7924 HECTARE OF LAND PUT UNDER CULTIVATION OF WHEAT COMES TO 3423 KG. THE CERTIFICATE OF PRESENT TALATI CUM MANTRI AND SARPUNCH IS NOT ACCEPTABLE AS THE SAME IS NOT IN ACCORDANCE WITH THE RECORD OF VILLAGE PANCHAYAT OFFICE AND 7/12 FORM. 5. IN VIEW OF THE ABOVE FACTS, I DONT ACCEPT THE CLAIM OF THE ASSESSEE THAT WHEAT CULTIVATION WAS CARRIED OUT ON ENTIRE LAND AND PRODUCTION 24,550 KG. WHEAT AND RESTRICT THE PRODUCTION AT 3,423 KG. AS THE SALE PRICE OF WHEAT BEING RS. 8/- PER KG. I TREAT THE SALE CONSIDERATION OF RS. 1,67,416/- (20,927 KG. X RS. 8/-) AS ASSESSEES INCOME FROM NON AGRICULTURE SOURCE AND MADE AN ADDITION OF RS.1,67,416/- TO THE RETURNED INCOME. I AM SATISFIED THAT THE ASSESSEE HAS FURNISHED INACCURATE ITA NO. 391/RJT/2014 SHRI BHIMBHAI RAMBHAI JADEJA VS. THE ITO ASST.YEARS 2009-10 - 4 - PARTICULARS OF INCOME RS.1,67,416/- AND PENAL PROCEEDINGS U/S. 274 READ WITH SECTION 271 ARE SEPARATELY INITIATED. FINALLY ADDITION OF RS.1,67,416/- ADDED TO THE INCOME OF THE ASSESSEE. 6. AGAINST THE SAID ORDER ASSESSEE PREFERRED FIRST STATUTORY APPEAL BEFORE THE LD. CIT(A), BUT LD. CIT(A) DISMISSED THE APPEAL WITH FOLLOWING OBSERVATION: DURING APPEAL PROCEEDINGS, SHRI RANJEET LALCHANDANI, ADVOCATE, APPEARING FOR THE APPELLANT HAS ARGUED THAT THE 7/12 EXTRACTS DO NOT CONTAIN THE FULL INFORMATION AND THEREFORE, THE PRODUCTION CANNOT BE ESTIMATED ON THAT BASIS. HE FURTHER ARGUED THAT THE APPELLANT HAS IN FACT CULTIVATED WHEAT ON 3.61.19 HECTARES IN MALIDA GRAM PANCHAYAT, IN SUPPORT OF WHICH A XEROX COPY OF CERTIFICATE OF TALATI IS FURNISHED. I HAVE GONE THROUGH THE 7-12 EXTRACTS OF THE LANDS SITUATED IN THE VILLAGE MALIDA, ACCORDINGLY TO WHICH THE IS CULTIVATED ONLY TO THE EXTENT OF 0.7924 HECTARES AS WAS POINTED OUT BY THE ASSESSING OFFICER IN THE ASSESSMENT ORDER. THE ASSESSING OFFICER IS CORRECT IN TAKING THE EXTENT OF LAND (0.7924 HECTARES) ON WHICH WHEAT IS CULTIVATED, ACCORDING TO WHICH, THE PROBABLE PRODUCTION OF WHEAT COMES TO ONLY 3623 KGS., MEANING THEREBY THE APPELLANT HAS SHOWN EXCESS PRODUCTION OF WHEAT AT 20,927 KGS., THE VALUE OF WHICH IS ESTIMATED AT RS.1,67,416/- (20,927 KGS. X RS. 8/- PER KG.) AND TREATED THIS AMOUNT AS INCOME FROM NON- ITA NO. 391/RJT/2014 SHRI BHIMBHAI RAMBHAI JADEJA VS. THE ITO ASST.YEARS 2009-10 - 5 - AGRICULTURAL SOURCES AND THEREFORE, ADDED THE SAME TO THE INCOME RETURNED. THE COPY OF CERTIFICATE GIVEN BY VILLAGE TALATI, NOW PRODUCED IS NOT VERIFIABLE AS THE SUBJECT MATTER OF THE CROPPING YEAR WAS THAT 2008-09. I THEREFORE, DECLINE TO INTERFERE IN THE INFERENCE DRAWN AND ADDITION MADE THEREON BY THE ASSESSING OFFICER. THE ADDITION MADE AT RS.67416/- STANDS CONFIRMED. 7. NOW SECOND APPEAL IS BEFORE US, WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE IMPUGNED ORDER AND PAPER BOOK FILED BY THE LD. AR, AO DELIVERED THIS ORDER ON THE BASIS OF ADVICE OF OFFICIALS/EXPORTS OF JUNAGADH AGRICULTURE UNIVERSITY. LD. A.R. FILED DOCUMENTS (7/12) IN SUPPORT OF HIS CONTENTION ISSUED BY MALIDA TALUKA BHESAN. EACH AND EVERY DETAIL IS MENTIONED SUCH AS NAME OF THE FARMER, SESON, CULTIVATION, AREA, TYPE OF CULTIVATION, SOURCE OF IRRIGATION AND ALSO FILED COMPARATIVE CHART OF WHEAT PRODUCTION/SALES WITH FOLLOWING DETAILS: SR. NO. A.Y. TOTAL PRODUCTION WHAT 1. 2008-09 KG. 18000 2. 2009-10 KG. 24350 3. 2010-11 KG. 25700 ALONG WITH CERTIFICATE ISSUED BY MALIDA GRAM PANCHAYAT IN CONNECTION WITH CROPS. 8. AFTER GOING THROUGH ALL THE ABOVE SAID DETAILS, WE ARE OF THE CONSIDERED OPINION THAT APPEAL OF THE ASSESSEE SHOULD BE ALLOWED. ITA NO. 391/RJT/2014 SHRI BHIMBHAI RAMBHAI JADEJA VS. THE ITO ASST.YEARS 2009-10 - 6 - 9. IN THE RESULT APPEAL FILED BY THE ASSESSEE IS ALLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON 07/02/2017 SD/- SD/- (PRADIP KUMAR KEDIA) ( MAHAVIR PRASAD ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 07/02/2017 PRITI YADAV / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A)-IV, RAJKOT. 5. , , / DR, ITAT, RAJKOT 6. / GUARD FILE. / BY ORDER, //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, RAJKOT TRUE COPY 1. DATE OF DICTATION 01/12/2016 (DICTATION-PAD 3 PAGES ATTACHED AT THE END OF THIS APPEAL- FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 03/02/2017 3. OTHER MEMBER 4. DATE ON W`HICH THE APPROVED DRAFT COMES TO THE SR.P.S./P.S 06/02/2017 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P.S./P.S. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DISPATCH OF THE ORDER