Mudunuri Sridevi, Bhimavaram V. Income Tax Officer, Ward-2, Bhimavaram

ITA 422/VIZ/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4951 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 08-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K SONOWAL
• Keywords: Revised return
• Section: 148; 133A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , ACCOUNTANT MEMBER . / I . T .A.NO. 42 1 - 423 /VIZ/20 1 8 ( / ASSESSMENT YEAR: 20 1 0 - 1 1 TO 2012 - 13 ) . SMT. MUDUNURI SRIDEVI D.NO.27 - 17 - 63 ASR NAGAR BHIMAVARAM WEST GODAVARI DIST. [PAN :BDUPM6273P] VS INCOME TAX OFFICER WARD - 2 BHIMAVARAM ./ I .T.A.NO. 573 - 575 /VIZ/2018 ( / ASSESSMENT YEAR: 2010 - 11 TO 2012 - 13) SHRI MUDUNURI SUBBA RAJU F.NO.100, R R ENCLAVE OPP.ADITYA PUBLIC SCHOOL SURYANARAYANAPURAM BHIMAVARAM WEST GODAVARI DIST. [PAN : ADLPM6979Q] VS. INCOME TAX OFFICER WARD - 2 BHIMAVARAM ( / APPELLANT) ( / RESPONDENT) / ASSESSEE BY : SHRI G.V.N.HARI, AR / REVENUE BY : SHRI D.K.SONOWAL, CIT DR / DATE OF HEARING : 30 .01.2019 / DATE OF PRONOUNCEMENT : 13 .02.2019 2 I.T.A. NO . 42 1 - 423 /VIZ/2018 AND 573 - 575 /VIZ/2018 SMT. MUDUNURI SRIDEVI AND SHRI M UDUNURI SUBBA RAJU, BHIMAVARAM / O R D E R P ER BENCH : THESE APPEALS ARE FILED BY THE ASSESSEES AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A)], RAJAMAHENDRAVARAM FOR THE ASSESSMENT YEAR (A.Y.) 2010 - 11TO 2012 - 13. SINCE THE ISSUES INVOLVED IN THESE APPEALS ARE IDENTICAL, THE APPEALS ARE CLUBBED, HEARD TOGETHER AND DISPOSED OF IN A COMMON ORDER FOR THE SAKE OF CONVENIEN CE AS UNDER. THE FACTS OF THE CASE ARE EXTRACTED FROM I.T.A NO.421/VIZ/2018 OF SMT. MUDUNURI SRIDEVI WHICH ARE COMMON TO ALL THE APPEALS. 2. ALL THE GROUNDS OF APPEAL ARE RELATED TO THE ADDITION OF RS.9 LAKHS ESTIMATING T H E INCOME @ RS.30,000/ - PER ACRE FROM FISH PONDS. A SURVEY U/S 133A WAS CONDUCTED IN THE CASE OF THE ASSESSEE AND THE ASSESSING OFFICER (AO) FOUND THAT THE ASSESSEES ARE ENGAGED IN THE PISCI CULTURE IN 86 ACRES OF FISH TANKS TAKEN ON LEASE. DURING THE COU RSE OF SURVEY, THE ASSESSEE WAS ASKED TO PRODUCE THE BOOKS OF ACCOUNTS BUT THE ASSESSEE FAILED TO PRODUCE THE SAME. FROM THE RETURNS OF INCOME FILED BY THE ASSESSEE , THE AO FOUND THAT THE INCOME ADMITTED BY THE ASSESSEE IS NOT COMMENSURATING WITH THE COMP ARABLE CASES. T HE AO VIEWED THAT EVEN IF THE INCOME IS 3 I.T.A. NO . 42 1 - 423 /VIZ/2018 AND 573 - 575 /VIZ/2018 SMT. MUDUNURI SRIDEVI AND SHRI M UDUNURI SUBBA RAJU, BHIMAVARAM ESTIMATED AT RS.15,000/ - PER ACRE CONSIDERING THE WATER SPREAD AREA, THE TOTAL INCOME WOULD BE RS.10,35,000/ - AND AGAINST WHICH THE INCOME ADMITTED BY THE ASSESSEE WAS RS.3,13,330/ - FAR BELOW THE COMPA RABLE CASES AND ACCORDINGLY REOPENED THE ASSESSMENT AND ISSUED THE NOTICE U/S 148 OF THE INCOME TAX ACT, 1961 (ACT IN SHORT). 2 . 1. IN RESPONSE TO THE NOTICE ISSUED U/S 148, THE ASSESSEE HAS FILED THE REVISED RETURNS OF INCOME ADMITTING THE INCOME A T RS.15,000/ - PER ACRE OF WATER SPREAD AREA ON ESTIMATION BASIS. SUBSEQUENTLY, THE ASSESSMENT WAS TAKEN UP FOR SCRUTINY AND THE AO REQUESTED THE ASSESSEES TO PRODUCE THE BOOKS OF ACCOUNTS. SINCE THE ASSESSEES FAILED TO PRODUCE THE BOOKS OF ACCOUNTS, THE AO ESTIMATED THE INCOME @ RS.30,000/ - PER ACRE. ACCORDINGLY MADE THE ADDITION OF RS.9,00,000/ - IN EACH CASE. AS PER THE ASSESSMENTS COMPLETED BY THE AO, THE RETURNED INCOME ORIGINALLY , THE REVISED RETURN OF INCOME AND THE ASSESSED INCOME IN THE CASE OF B OTH THE ASSESSEES ARE AS UNDER : A.Y. SMT.MUDUNURI SRIDEVI SHRI MUDUNURI SUBBA RAJU RETURNED INCOME REVISED RETURN OF INCOME ASSESSED INCOME RETURNED INCOME REVISED RETURN OF INCOME ASSESSED INCOME 2010 - 11 3, 88 ,330 8,52,440 17,52,436 6 , 08 ,0 40 21,21,721 42,21,721 2011 - 12 4,69,5 52 8,52,440 14,52,436 7,65,720 21,21,721 35,21,721 2012 - 13 5,07 , 2 06 11,52,436 14,52,436 20,81,775 28,20,410 35,20,410 4 I.T.A. NO . 42 1 - 423 /VIZ/2018 AND 573 - 575 /VIZ/2018 SMT. MUDUNURI SRIDEVI AND SHRI M UDUNURI SUBBA RAJU, BHIMAVARAM 3. AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEES WENT ON APPEAL BEFORE THE CIT(A) AND THE LD.CIT(A) CONFIRMED THE ORDER OF THE AO AND DISMISSED THE APPEALS OF THE ASSESSEE. AGAINST THE ORDER OF THE LD.CIT(A), THE ASSESSEES ARE IN APPEAL BEFORE THIS TRIBUNA L. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED ON RECORD. IN THIS CASE, THE AO CONDUCTED THE SURVEY U/S 133A AND OBSERVED THAT THE ASSESSEE HAS NOT MAINTAINED THE BOOKS OF ACCOUNTS AND THE INCOME ADMITTED BY THE ASSESSEE WAS LESS TH AN RS.15,000/ - PER ACRE OF WATER SPREAD AREA AND REASONABLE INCOME FROM FISH POND IS 15000/ - PER ACRE. FROM THE ASSESSMENT ORDER IT IS OBSERVED BY THE AO THAT THE REASONABLE INCOME FROM FISH CULTURE WOULD BE AROUND RS.15,000/ - PER ACRE FOR WATER SPREAD A REA OF 80%. SINCE THE INCOME ADMITTED BY THE ASSESSEE WAS LESS THAN RS.15,000/ - THE AO REOPENED THE ASSESSMENT U/S 148 AND THE ASSESSEE FILED THE REVISED RETURN ADMITTING THE INCOME @15,000/ - PER ACRE FOR WATER SPREAD AREA . ONCE, THE ASSESSEE FILED THE RE VISED RETURNS OF INCOME ADMITTING THE INCOME AT RS.15,000/ - PER ACRE ON ESTIMATION BASIS, THE AO COMPLETED THE ASSESSMENT ESTIMATING THE INCOME @ RS.30,000/ - PER ACRE STATING THAT THE INCOME IS ESTIMATED IN SIMILAR CASES IN THIS AREA @RS.30,000/ - PER ACRE . NO D ETAILS OF THE SIMILAR CASES WERE BROUGHT ON 5 I.T.A. NO . 42 1 - 423 /VIZ/2018 AND 573 - 575 /VIZ/2018 SMT. MUDUNURI SRIDEVI AND SHRI M UDUNURI SUBBA RAJU, BHIMAVARAM RECORD AND THE AO ALSO DID NOT GIVE ANY BASIS FOR ESTIMATING THE INCOME AT RS.30,000/ - PER ACRE WITH THE QUANTITY OF YIELD, ESTIMATED EXPENDITURE AND THE NET PROFIT. DURING THE APPEAL HEARING THE LD.DR DID NOT F URNISH ANY MATERIAL TO ESTABLISH THAT THE INCOME FROM FISH POND IS MORE THAN RS.15,000/ - PER ACRE OR TO SUBSTANTIATE THE ESTIMATION MADE BY THE AO. THEREFORE, WE OBSERVE THAT THERE IS NO BASIS FOR ESTIMATING THE INCOME AT RS.30,000/ - PER ACRE IN THIS CASE. THE COORDINATE BENCH OF ITAT CONSIDERED THE SIMILAR ISSUE OF ESTIMATION OF INCOME FROM PISCI CULTURE IN THE CASE OF M/S KRISHNA FISHERIES, VIJAYAWADA IN I.T.A. NO.325 TO 330/VIZ/2015 DATED 26.07.2017 AND OBSERVED THAT ESTIMATION OF INCOME AT RS.13,300/ - PER ACRE OF WATER SPREAD AREA IS REASONABLE. FOR READY REFERENCE, WE EXTRACT RELEVANT PART OF THE ORDER OF THIS TRIBUNAL CITED SUPRA. AS PER THE BOARD CIRCULAR THE ESTIMATED INCOME PER ACRE WAS RS.4000/ - ON WATER SPREAD AREA OF 70% OF THE FISH POND FOR THE YEAR 1993 - 94 AND THE SAME CANNOT BE SAID TO BE REASONABLE FOR THE ASSESSMENT YEAR 2006 - 07, WHICH IS AFTER 13 YEARS. HOWEVER, WITH REGARD TO WATER SPREAD AREA OF 70% REMAINED UNCHANGED. THE LD. CIT(A) CONFIRMED THE ESTIMATION OF INCOME @ RS.22,000/ - PER ACRE INCLUSIVE OF BUNDS AND RS. 13,300/ - FOR 70% OF WATER SPREAD AREA SINCE THE ASSESSEE IS NOT MAINTAINING THE BOOKS OF ACCOUNTS. THE LD. A.R DID NOT PLACE ANY EVIDENCE TO DISPROVE THE ESTIMATION CONFIRMED BY THE LD. CIT(A). THE REVENUE ALSO DID NOT P LACE ANY EVIDENCE TO SHOW THAT THE ESTIMATION OF INCOME @ RS.13,300/ - IS NOT REASONABLE. THEREFORE, IN THE ABSENCE OF BOOKS OF ACCOUNTS WE HOLD THAT RS.13,300/ - PER ACRE OF WATER SPREAD AREA APPEARS TO BE REASONABLE AND ACCORDINGLY WE UPHOLD THE ORDER OF THE LD. CIT(A). THE ESTIMATION OF WATER SPREAD AREA AND THE BUND AREA IS IN ACCORDANCE WITH THE CIRCULAR ISSUED BY THE CBDT. ACCORDINGLY, WE UPHOLD THE ORDER OF THE LD. CIT(A) AND THE REVENUES APPEAL ON THIS GROUND IS DISMISSED. 6 I.T.A. NO . 42 1 - 423 /VIZ/2018 AND 573 - 575 /VIZ/2018 SMT. MUDUNURI SRIDEVI AND SHRI M UDUNURI SUBBA RAJU, BHIMAVARAM IN THE INSTANT CASE, THE AO HAS REOPENED THE ASSESSMENT SINCE THE INCOME DECLARED BY THE ASSESSEE WAS LESS THAN RS.15,000/ - PER ACRE. IN RESPONSE TO THE NOTICE, THE ASSESSEES HAVE ADMITTED THE INCOME @ RS.15,000/ - PER ACRE OF WATER SPREAD AREA A ND THE LOWER AUTHORITIES FAILED TO BRING ANY EVIDENCE OR MATERIAL TO SUPPORT THE CONTENTION THAT THE INCOME IS MORE THAN RS.15,000/ - PER ACRE ADMITTED BY THE ASSESSEE. THEREFORE, RESPECTFULLY FOLLOWING THE VIEW TAKEN BY THIS TRIBUNAL IN THE CASE CITED S UPRA, WE HOLD THAT ESTIMATION OF INCOME AT RS.15,000/ - PER ACRE IS REASONABLE. ACCORDINGLY, WE SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES AND ALLOW THE APPEALS OF THE ASSESSEE. 5. IN THE RESULT, APPEALS OF THE ASSESSEES ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH FEBRUARY, 2019. S D/ - S D/ - ( . . ) ( . ) ( D.S. SUNDER SINGH ) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER /VISAKHAPATNAM /DATED : 13 .0 2 .2019 L.RAMA, SPS 7 I.T.A. NO . 42 1 - 423 /VIZ/2018 AND 573 - 575 /VIZ/2018 SMT. MUDUNURI SRIDEVI AND SHRI M UDUNURI SUBBA RAJU, BHIMAVARAM / COPY OF THE ORDER FORWARDED TO: - 1. / THE ASSESSEE - (I) SMT. MUDUNURI SRIDEVI, D.NO.27 - 17 - 63, ASR NAGAR, BHIMAVARAM, WEST GODAVARI DIST. (II) SHRI MUDUNURI SUBBA RAJU F.NO.100, R R ENCLAVE , OPP.ADITYA PUBLIC SCHOOL , SURYANARAYANAPURAM BHIMAVARAM , WEST GODAVARI DIST. 2. / THE REVENUE INCOME TAX OFFICER , WARD - 2 , BHIMAVARAM 3. THE PR. COMMISSIONER OF INCOME TAX , RAJAMAHENDRAVARAM 4. COMMISSIONER OF INCOME - TAX (APPEALS), RAJAMAHENDRAVARAM 5 . , , / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM