Shri Ashok M. Magdum (HUF), Belgaum V. Income Tax Officer, Ward-2 (1), Belgaum., Belgaum

ITA 402/PAN/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93444 (ITAT-PANAJI)
• Duration Of Justice: 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 02-06-2015
• Assessment Year: misc
• Appeal Filed On: 17-11-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: B BARTHAKUR LD
• Assessee Lawyers: S V HALBHAVI

Judgement Text

1 ITA NO. 402/PNJ/2014 IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI GEORGE MATHAN , HONBLE JUDICIAL MEMBER ITA NO. 402 /PNJ/2014 (ASST. YEAR : 200 7 - 0 8 ) SHRI ASHOK M. MAGDUM (HUF) , PLOT NO. 126, VEERAGO SOCIETY MARG, HINDWADI, BELGAUM. VS. ITO , WARD - 2( 1 ), BELGAUM . PAN NO. AAGHA 9523 G (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S.V. H A LBHAVI - CA DEPARTMENT BY : SHRI B. BARTHAKUR LD. DR DATE OF HEARING : 0 2 / 0 6 /2015 . DATE OF PRONOUNCEMENT : 0 3 / 0 6 /201 5 . O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT (A), BELGAUM IN APPEAL NO. 387 /BGM/ 200 9 - 1 0 DATED 0 2 /0 9 /201 4 FOR THE A.Y. 200 7 - 0 8 . 2. SHRI S.V. HALBHAVI, C . A . REPRESENTED ON BEHALF OF THE ASSESSEE AND SHRI B. BARTHAKUR , LD. DR REPRESENTED ON BEHALF OF THE REVENUE. 2 ITA NO. 402/PNJ/2014 3. IT WAS SUBMITTED BY THE LEARNED AR THAT THE ASSESSEE IS A HUF . I N THE COURSE OF ASSESSMENT, THE ASSESSING OFFICER HAD MADE VARIOUS ADDITIONS. IT WAS THE SUBMISSION THAT THE L D. CIT(A) HAD ALSO CONFIRMED PART OF THE ADDITIONS AND IN RESPECT OF FD INTEREST AND THE INTEREST ON SB ACCOUNT , THE ISSU E HAS BEEN SET ASIDE TO THE ASSESSING OFFICER FOR RE - EXAMINATION. CONSEQUENTLY, IT WAS THE SUBMISSION BY THE LEARNED AR THAT HE DID NOT WISH TO PRESS THE GROUNDS NOS. 4 TO 6 . CONSEQUENTLY, GROUNDS NO. 4 TO 6 OF THE ASSESSEES APPEAL STAND DISMISSED. 4 . GROUND NO.1 IS GENERAL IN NATURE . IN RESPECT OF GROUND NO.2, IT WAS SUBMITTED BY THE LEARNED AR THAT THE ASSESSEE - HUF HAD DISCLOSED AGRICULTURAL INCOME TO THE EXTENT OF RS. 3,60,800/ - . IT WAS THE SUBMISSION THAT THE ASSESSEE HAD PRODUCED BILLS FOR SALE OF SOYAB EA N TO THE EXTENT OF RS. 2,47,066/ - . AND IN RESPECT OF CASH CROPS NAMELY WHEAT, JAWAR & GRAM DAL TO THE EXTENT OF RS. 1,70,500/ - , T HE ASSESSEE WAS UNABLE TO PRODUCE THE BILLS AND CONSEQUENT L Y, THE ASSESSING OFFICER HAD TREATED THE SAME AS UNEXPLAINED INCOME OF THE ASSESSEE. IT WAS THE SUBMISSION THAT THE ASSESSEE HAD NEARLY 15 ACRES AND 08 GUNTHA OF LAND. IT WAS THE FURTHER SUBMISSION THAT OUT OF THE SAID LAND, 1 4 ACRES WERE UNDER RIVER IRRIGAT ION BY THE KRISHNA RIVER . IT WAS THE SUBMISSION 3 ITA NO. 402/PNJ/2014 THAT THE ASSESSEE WAS UNABLE TO PRODUCE THE EVIDENCES IN RESPECT OF THE SALE OF CASH CROPS, BUT HE DID HAVE SELF BILLS . IT WAS THE SUBMISSION THAT THE ADDITION WAS LI A BLE TO THE DELETED. 5. IN REPLY, LEARNED DR SUBMITTED THAT IN ABSENCE OF SALE BILLS, AS ALSO THE ABSENCE OF THE IDENTITY OF THE PURCHASERS OF A G RI CUL TURE PRODUCE, THE ADDITION MADE BY THE ASSESSING OFFICER IN RESPECT OF THE CASH CROPS, LIABLE TO BE UPHELD. 6. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. 7 . ADMITTEDLY, THE ASSESSEE DOES OWN SUBSTANTIAL AGRICULTURAL LAND. THE ASSESSEE HAS ALSO PRODUCED TH E BILLS IN RESPECT OF THE SALE OF S OYABEAN AND THE SAME HAS ALSO BEEN FOUND TO BE TRUE. THEREFORE, THE FACTUM THAT THE ASSESSEE IS DOING AGRICULTURAL ACTIVITIES , CANNOT BE DENIED . HOWEVER , CONSIDERING THE FACT THAT THE ASSESSEE DOES NOT H A VE ANY DETAILS IN RESPECT OF THE SALE OF CASH CROPS AND CONSIDERING THE FACT TH A T THE ASSESSEE DOES HAVE AGRICULTURAL LAND AND HAS BEEN DOING AGRICULTURAL ACTIVITIES, THE ADDITION MADE BY THE ASSESSING OFFICER STANDS REDUCED TO RS. 1,20,000/ - . THE ASSESSEE GETS RELIEF OF RS. 50,000/ - ON THIS ISSUE. 4 ITA NO. 402/PNJ/2014 8 IN THE RESULT, THE ADDITION MADE BY THE ASSESSING OFFICER ON THIS COUNT IS REDUCED TO RS. 1,20,000/ - . 9 IN REGARD TO GROUND NO.3, IT WAS THE SUBMISSION THAT THE ASSESSING OFFICER MADE THE ADDITION OF RS. 96,000/ - ON THE GROUND TH A T THE ASSESSEE HAD NOT SHOWN ANY DRAWINGS . IT WAS THE SUBMISSION THAT THE COPARCENERS OF THE ASSESSEE - HUF HAD ADEQUATE DRAWINGS. CONSEQUENTLY, FOR THE ASSESSMENT YEAR UNDER CONSIDERATION , NO DRAWINGS WERE REQUIRED TO BE MADE IN THE HANDS OF THE HUF. IT WAS THE FURTHER SUBMISSION THAT NO EVIDENCE HAS BEEN FOUND TO SHOW THAT THE ASSESSEE HAS INCURRED ANY EXPENDITU RE ON ACCOUNT OF THE COPARCENERS WHICH HAS NOT BEEN RECORDED IN THE BOOKS OF ACCOUNTS . IT WAS THE SUBMISSION THAT THE ADDITION MADE BY THE ASSESSING OFFICER WAS LIABLE TO BE DELETED. 10 . IN REPLY, LEARNED DR VEHEMENTLY SUPPORTED THE ORDER OF THE ASSESSING OFFICER AS WELL AS L D. CIT(A) . 11 I HAVE CONSIDERED THE RIVAL SUBMISSIONS. 5 ITA NO. 402/PNJ/2014 12 AS IT IS NOTICED THAT THE ASSESSING OFFICER HAS NOT BEEN A B LE TO IDENTIFY THE NATURE OF THE EXPENDITURE IN THE HANDS OF THE ASSESSEE HUF AND IN RESPECT OF THE COPARCENERS , FOR WHICH THE DRAW I N G S ARE LIABLE TO BE MADE IN THE HANDS OF THE HUF , T HE ADDITION MADE BY THE ASSESSING OFFICER AND AS CONFIRMED BY THE L D. CIT(A) STANDS DELETED. 13 . IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED . ( ORDER PRONOUNCED IN THE OPEN COURT ON 0 3 R D JUNE , 201 5 ). S D / - ( GEORGE MATHAN ) JUDICIAL MEMBER DATED : 0 3 R D J UNE , 201 5 . VR/ - COPY TO: 1 . THE APPELLANT 2 . THE RESPONDENT 3 . THE LD. CIT 4 . THE CIT(A) 5 . THE D.R 6 . GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., PANAJI 6 ITA NO. 402/PNJ/2014 DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ORDER ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 0 2 .06.2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 02 .06.2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER N/A JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER N/A JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 0 2 /06/2015 SR.PS 6. DATE OF PRONOUNCEMENT 03 /06/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 03 /06/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER