Parvinder Singh, Panipat V. ITO, Ward- 3 , Panipat

ITA 494/DEL/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2877 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 22-01-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Salary income; Revised return
• Section: 48; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES SMC: DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA.NO.494/DEL./2019 ASSESSMENT YEAR 2015-2016 SHRI PARVINDER SINGH, PANIPAT, PANBSUPS3274D C/O. DEVINDER K JAIN & ASSOCIATES, 206, 2 ND FLOOR, 79, KEDARNATH MARG, DARYAGANJ, NEW DELHI-002. VS., THE INCOME TAX OFFICER, WARD-3, PALIKA BAZAR, PANIPAT, PIN 132 103 HARYANA. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI KARTIK JAIN, C.A. AND SHRI D.K. JAIN, C.A. FOR REVENUE : SHRI S.L. ANURAGI, SR. D.R. DATE OF HEARING : 19.08.2019 DATE OF PRONOUNCEMENT : 02.09.2019 ORDER THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED A GAINST THE ORDER OF LD. CIT(A), KARNAL, DATED 26 TH NOVEMBER, 2018 FOR ASSESSMENT YEAR 2015-16, CHALLENGING ADDITION O F RS.10,78,544/-. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE RETU RN OF INCOME WAS FILED ON 16 TH MARCH, 2016 DECLARING TAXABLE INCOME AT RS.2,70,010/- + AGRICULTURAL INCOME OF 2 ITA.NO.494/DEL./2019 SHRI PARVINDER SINGH, PANIPAT. RS.24,78,544/-, WHICH WAS PROCESSED UNDER SECTION 1 43(1) OF THE INCOME TAX ACT, 1961. THE CASE WAS SELECTED FOR SCRUTINY TO EXAMINE THE ISSUE OF LARGE AGRICULTURAL INCOME. THE ASSESSEE DERIVED INCOME FROM SALARY AND AGRICUL TURAL PRODUCE. THE ASSESSEE WAS ASKED TO PRODUCE FORM-J, COPY OF FARD, JAMABANDI AND BANK ACCOUNT FOR RELEVANT ASSESSMENT YEAR. THE ASSESSEE PRODUCED COPY OF GIRD AURI AND CAPITAL ACCOUNT OF ASSESSEE. THE ASSESSEE CLAIM ED THAT HE IS OWNER OF 48 KANALS OF AGRICULTURAL LAND AND H AS ALSO CULTIVATED LAND OF HIS BROTHERS NAMELY SHRI SATBIR AND SHRI RANDHIR SINGH, WHO OWNED 96 KANALS OF AGRICULTURAL LAND. THEREFORE, ASSESSING OFFICER ASKED FOR FURTHER DETA ILS AND DETAILS OF FAMILY MEMBERS OF ASSESSEE. ASSESSEE PRO DUCED COPY OF FARD OF AGRICULTURAL LAND OWNED BY ASSESSEE . PERUSAL OF FARD REVEALS THAT THE ASSESSEE OWNED 6 ACRES OF AGRICULTURAL LAND ONLY, WHEREAS THE ASSESSEE HAS SH OWN AGRICULTURAL INCOME OF RS.24,78,544/- IN ASSESSMENT YEAR UNDER APPEAL WHICH IS VERY MUCH ON THE HIGHER SIDE AS AGAINST THE AGRICULTURAL LAND OWNED BY THE ASSESSEE . THE ASSESSEE WAS ASKED TO FURNISH DETAILS OF THE LAND H OLDINGS 3 ITA.NO.494/DEL./2019 SHRI PARVINDER SINGH, PANIPAT. BY HIM ALONG WITH THE LAND TAKEN ON LEASE, IN CONFI RMATION OF THE CULTIVATION OF AGRICULTURAL LAND. THE ASSESS EE SUBMITTED AFFIDAVIT OF SHRI SATBIR AND RANDHIR SING H ALONG WITH THE COPY OF THE AGREEMENT MADE WITH SHRI RAJES H CONFIRMING THE LEASE OF LAND TAKEN BY ASSESSEE. THE A.O. NOTED THAT REPLY OF ASSESSEE WOULD REVEAL THAT ASSE SSEE CULTIVATED 28 ACRES OF LAND DURING THE YEAR, OUT OF WHICH, 6 ACRES OWNED BY HIM AND THE REMAINING 22 ACRES WAS T AKEN ON LEASE FROM VARIOUS PERSONS. ULTIMATELY, REPLY OF THE COUNSEL FOR ASSESSEE WAS RECEIVED THROUGH DAK IN WH ICH ASSESSEE STATED THAT IT IS NOT POSSIBLE TO PRODUCE BALANCE SHEET AND STATEMENT OF AFFAIRS OF THE ASSESSEE. HOW EVER, BANK STATEMENT OF THE ASSESSEE IS PRODUCED AND REQU ESTED THAT AGRICULTURAL INCOME OF RS.10,97,931/- AS PER R EVISED RETURN FILED BY THE ASSESSEE MAY BE ACCEPTED. 2.1. THE ASSESSING OFFICER NOTED THAT ASSESSEE IS A PARTNER IN THE FIRM M/S. SUN RESEARCH AND BREEDING FARM AND THE AMOUNT OF SALARY AND INTEREST RECEIVED FROM THE FIRM HAS BEEN SHOWN AS INCOME FROM BUSINESS OR PROFESSIO N. THE ASSESSEE WAS ASKED TO FURNISH DETAILS OF AGRICULTUR AL INCOME 4 ITA.NO.494/DEL./2019 SHRI PARVINDER SINGH, PANIPAT. EARNED. THE ASSESSEE SUBMITTED THAT HE WAS CULTIVAT ING 48 KANALS OF AGRICULTURAL LAND WHICH IS OWNED BY HIM A ND 96 KANALS TAKEN ON LEASE FROM HIS BROTHERS NAMELY SHRI SATBIR AND SHRI RANDHIR SINGH. THE COMMISSION AGENT WAS AL SO CALLED FOR WHOSE STATEMENT WAS RECORDED ON OATH WHO HAVE STATED THAT ASSESSEE HAS SOLD AGRICULTURAL CROPS WI TH THEM ONLY DURING ASSESSMENT YEAR UNDER APPEAL AND PRIOR TO IT OR SUBSEQUENT TO ASSESSMENT YEAR NO AGRICULTURAL PRODU CE WAS SOLD AND THAT SALE CONSIDERATION OF AGRICULTURAL PR ODUCE WAS MADE IN CASH. STATEMENT OF SHRI SATBIR AND SHRI RAN DHIR SINGH WERE ALSO RECORDED AS THEY WERE PRODUCED BY T HE ASSESSEE BECAUSE OF SUMMONS SENT TO THEM WHICH COUL D NOT BE SERVED UPON THEM. IN THE STATEMENT OF SHRI SATBI R, HE HAS STATED THAT HE WAS RETIRED AS JBT MASTER AND OW NS 6 ACRES OF AGRICULTURAL LAND, OUT OF WHICH, 4 ACRES A RE BEING CULTIVATED BY HIM AND 2 ACRES HAS BEEN GIVEN TO THE ASSESSEE ON LEASE. HE WAS ASKED TO EXPLAIN WHETHER ANY LOAN HAS BEEN TAKEN ON KISAN CREDIT CARD ON THE AGRICULTURAL LAND OWNED BY HIM. IN RESPONSE THERETO , IT IS STATED BY HIM THAT HE HAS AVAILED THIS FACILITY FRO M THE 5 ITA.NO.494/DEL./2019 SHRI PARVINDER SINGH, PANIPAT. BANK. THE ASSESSING OFFICER NOTED THAT LOAN ON KISA N CREDIT CARD IS BEING GIVEN ON THE BASIS OF AGRICULTURAL LA ND CULTIVATED BY THE FARMER. FURTHER, SAME WAS THE POS ITION IN THE CASE OF SHRI RANDHIR SINGH BROTHER OF THE ASSES SEE. THE ASSESSING OFFICER, THEREFORE, NOTED THAT SHRI SATBI R AND RANDHIR SINGH BOTH BROTHERS OF THE ASSESSEE HAD CUL TIVATED THEIR AGRICULTURAL LAND BY THEMSELVES AND NO PART O F SUCH LAND HAVE BEEN GIVEN TO THE ASSESSEE. THE ASSESSING OFFICER, THEREFORE, ASKED THE ASSESSEE AS TO WHY THE AGRICUL TURAL LAND OWNED BY HIM OF 6 ACRES MAY NOT BE CONSIDERED FOR THE PURPOSE OF ESTIMATING AGRICULTURAL INCOME AT RS.3 L ACS IN TOTAL AND REST BE NOT TREATED AS INCOME FROM UNDISC LOSED SOURCES. THE ASSESSEE IN ORDER TO JUSTIFY HIS EXPLA NATION IMMEDIATELY CHANGED HIS STATEMENT AND SUBMITTED THA T HE HAS ALSO TAKEN 14 ACRES OF AGRICULTURAL LAND FROM S HRI RAJESH AND CULTIVATED DURING THE ASSESSMENT YEAR UN DER APPEAL. IN SUPPORT OF THE SAME LAND, AGREEMENT WAS ALSO FURNISHED WHICH REVEALED THAT IT HAS BEEN PURCHASED ON 8 TH JUNE 2017 AND WAS ALSO EXECUTED ON THE SAME DAY ON 8 TH JUNE 2017. THE ASSESSING OFFICER HAS ALSO NOTED THA T 6 ITA.NO.494/DEL./2019 SHRI PARVINDER SINGH, PANIPAT. ASSESSEE HAS CONCOCTED THE STORY OF TAKING THE LAND ON LEASE FROM SHRI RAJESH. THE ASSESSING OFFICER FURTHER NOT ED DURING ASSESSMENT PROCEEDINGS THAT ASSESSEE FILED REVISED INCOME TAX RETURN REDUCING THE AGRICULTURAL INCOME FROM RS.24,78,544/- TO RS.13,67,940/-. SINCE THE AGRICU LTURAL INCOME WAS REDUCED WITHOUT ANY BASIS, IT WAS NOT AC CEPTED. THE ASSESSING OFFICER ALSO NOTED THAT IN PRECEDING ASSESSMENT YEARS 2013-14 AND 2014-15 ASSESSEE HAS SHOWN AGRICULTURAL INCOME OF RS.7,97,773/- AND RS.8 LACS. IN SUBSEQUENT ASSESSMENT YEAR 2016-17 ASSESSEE HAS SHOWN AGRICULTURAL INCOME OF RS.5 LACS ONLY. THE AS SESSING OFFICER, THEREFORE, NOTED THAT ASSESSEE HAS SHOWN V ERY HIGH AGRICULTURAL INCOME AND THE SAME HAVE NOT BEEN SUBSTANTIATED THROUGH ANY EVIDENCE OR MATERIAL ON R ECORD. THUS, ASSESSEE HAS ALSO FAILED TO PROVE ANY FACT BE FORE THE ASSESSING OFFICER. THE ASSESSING OFFICER, THEREFORE , CONSIDERING THE TOTALITY OF THE FACTS AND CIRCUMSTA NCES, CONSIDERED THAT ASSESSEE HAS CULTIVATED 28 ACRES OF LAND AND ESTIMATED THAT ASSESSEE HAS EARNED AGRICULTURAL INC OME OF RS.50,000/- PER ACRE, THEREFORE, ESTIMATED THE AGRI CULTURAL 7 ITA.NO.494/DEL./2019 SHRI PARVINDER SINGH, PANIPAT. INCOME OF RS.14 LACS AND REST OF THE AMOUNT OF RS.10,78,544/- WAS CONSIDERED AS INCOME FROM OTHER SOURCES, ADDITION OF WHICH, WAS MADE TO THE RETURNE D INCOME. THE LD. CIT(A) CONFIRMED THE ADDITION AND DISMISSED THE APPEAL OF ASSESSEE. 3. I HAVE HEARD LEARNED REPRESENTATIVES OF BOTH TH E PARTIES AND PERUSED THE FINDINGS OF THE AUTHORITIES BELOW. LEARNED COUNSEL FOR THE ASSESSEE REFERRED TO COPY O F THE RETURN OF INCOME FILED AT PAGE NUMBER 98 OF THE PAP ER BOOK AND REFERRED TO PB-109 TO SHOW THAT GROSS AGRICULTU RAL INCOME WAS SHOWN IN THE RETURN IN A SUM OF RS.24,78 ,544/- AND EXPENSES HAVE BEEN SHOWN AT NIL [ZERO]. HE HAS SUBMITTED THAT WRONGLY THE EXPENSES COULD NOT BE SH OWN IN THE RETURN. PB-52 IS PROFIT AND LOSS ACCOUNT OF AGR ICULTURAL INCOME TO SHOW THE TOTAL AGRICULTURAL INCOME RECEIP TS IN A SUM OF RS.24,78,952/- AND AFTER EXPENSES, THE NET P ROFIT HAVE BEEN SHOWN IN A SUM OF RS.10,97,930/-. HE HAS SUBMITTED THAT ASSESSEE PRODUCED ALL THE MANDI RECE IPTS AND ALSO PRODUCED ALL THE PERSONS WHOSE LAND HAVE B EEN TAKEN ON LEASE. THEREFORE, BURDEN UPON ASSESSEE HAS BEEN 8 ITA.NO.494/DEL./2019 SHRI PARVINDER SINGH, PANIPAT. PROVED THAT ASSESSEE EARNED AGRICULTURAL INCOME. TH EREFORE, ADDITION MAY BE DELETED. 4. ON THE OTHER HAND, LD. D.R. RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT ASSESSEE REVISED THE RETURN OF INCOME TO REDUCE THE AGRICULT URAL INCOME AND NO EVIDENCE OF DOING ANY AGRICULTURAL AC TIVITY HAVE BEEN FILED BY ASSESSEE. IN EARLIER AND SUBSEQU ENT ASSESSMENT YEARS, ASSESSEE HAS SHOWN LESSER AGRICUL TURAL INCOME. THEREFORE ADDITION IS WHOLLY JUSTIFIED. 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND DO NOT FIND ANY MERIT IN THE APPEAL OF ASSESSEE. THE A SSESSEE CLAIMED TO HAVE EARNED AGRICULTURAL INCOME OF RS.24,78,544/- IN THE RETURN OF INCOME. THE SAME AM OUNT HAVE BEEN SHOWN IN THE RETURN OF INCOME AS GROSS AGRICULTURAL RECEIPTS. THE EXPENDITURE INCURRED ON AGRICULTURE HAVE BEEN SHOWN AT NIL [ZERO]. IT IS HI GHLY IMPROBABLE THAT WITHOUT INCURRING ANY EXPENDITURE A SSESSEE WOULD HAVE EARNED SUCH AGRICULTURAL INCOME. THE ASS ESSEE IN THE PROFIT AND LOSS ACCOUNT HAS CLAIMED AGRICULT URAL 9 ITA.NO.494/DEL./2019 SHRI PARVINDER SINGH, PANIPAT. EXPENSES AND NET PROFIT ON ACCOUNT OF AGRICULTURAL INCOME HAVE BEEN SHOWN AT RS.10,97,930/-. THIS FACT ITSELF DISENTITLE THE ASSESSEE FOR MAKING CLAIM OF HIGHER AGRICULTURAL INCOME. THE ASSESSEE AND HIS BROTHERS WERE NOT HAVING HUGE AGRICULTURAL LAND SO AS TO EARN THAT MU CH HUGE AGRICULTURAL INCOME. IT MAY ALSO BE NOTED HERE THAT ASSESSEE HAS FILED REVISED RETURN OF INCOME DURING ASSESSMEN T PROCEEDINGS REDUCING THE AGRICULTURAL INCOME FROM RS.24,78,544/- TO RS.13,67,940/-. THOUGH THIS REVIS ED RETURN WAS NOT ACCEPTED BY THE ASSESSING OFFICER, B UT, IT WOULD SHOW THAT ASSESSEE HAS IN FACT NOT EARNED HUG E AGRICULTURAL INCOME OF RS.24,78,544/-. THE ASSESSEE IN THE EARLIER YEAR AS WELL AS IN SUBSEQUENT YEARS HAVE SH OWN MEAGER AGRICULTURAL INCOME RANGES FROM RS.5 LACS TO RS.8 LACS ONLY. THE ASSESSEE DID NOT PRODUCE ANY SUFFICI ENT DOCUMENTARY EVIDENCES BEFORE THE AUTHORITIES BELOW TO CLAIM HUGE AGRICULTURAL INCOME OF RS.24,78,544/- EARNED O UT OF SMALL AGRICULTURAL LAND HOLDINGS. THE AGREEMENT WIT H SHRI RAJESH WAS EXECUTED ON 8 TH JUNE 2017 I.E., AFTER CLOSURE OF THE FINANCIAL YEAR RELEVANT TO ASSESSMENT YEAR UNDE R APPEAL. 10 ITA.NO.494/DEL./2019 SHRI PARVINDER SINGH, PANIPAT. THEREFORE, IT IS CONCOCTED AND FABRICATED BY THE AS SESSEE. CONSIDERING THE TOTALITY OF THE FACTS AND CIRCUMSTA NCES OF THE CASE AND CONDUCT OF THE ASSESSEE IN CHANGING ST AND AT DIFFERENT LEVEL AND CLAIMING LESSER AGRICULTURAL IN COME BEFORE THE AUTHORITIES BELOW WOULD CLEARLY SHOW THAT AUTHO RITIES BELOW WERE VERY REASONABLE IN ESTIMATING THE AGRICU LTURAL INCOME AT RS.14 LACS, THOUGH THE ASSESSEE CLAIMED L ESSER AMOUNT OF THE SAME SUBSEQUENTLY. THEREFORE, AUTHORI TIES BELOW WERE JUSTIFIED IN CONSIDERING RS.10,78,544/- AS INCOME FROM OTHER SOURCES. NO INTERFERENCE IS CALLE D FOR IN THE MATTER. I, THEREFORE, DISMISS THE APPEAL OF THE ASSESSEE. 6. IN THE RESULT, APPEAL OF ASSESSEE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DELHI, DATED 2 ND SEPTEMBER, 2019 VBP/- 11 ITA.NO.494/DEL./2019 SHRI PARVINDER SINGH, PANIPAT. COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT SMC BENCH 6. GUARD FILE //BY ORDER// ASST. REGISTRAR : ITAT : DELHI BENCHES : DELHI. DATE OF DICTATION 20.08.2019 DATE ON WHICH THE TYPED DRAFT ORDER IS PLACED BEFOR E THE DICTATION MEMBER 30.08.2019 DATE ON WHICH THE APPROVAL DRAFT COMES TO THE SR. P S 02.09.2019 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATION MEMBER FOR PRONOUNCEMENT 02.09.2019 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S. 02.09.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 02.09.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 03. 09.2019 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER.