NEEL KAMAL BIOFUEL TECHNOLOGIES (P) LTD., Jaipur V. ITO, Jaipur

ITA 526/JPR/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4977 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 29-05-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: POONAM RAI DCIT DR DHK
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH HKKXPUN] YS[KK LNL; DS LE{K BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 526/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2005-06 M/S. NEEL KAMAL BIOFUEL TECHNOLOGIES (P) LTD. 10/61, SWARAN PATH, MANSAROVAR JAIPUR CUKE VS. THE ITO WARD- 2(2), JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AABCN 9081 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: SHRI MANISH AGARWAL, CA JKTLO DH VKSJ LS@ REVENUE BY :SMT. POONAM RAI, DCIT-. DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 24/10/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 26 /10/2016 VKNS'K@ ORDER PER BHAGCHAND, AM THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A) -1, JAIPUR DATED 20-03-2015 FOR THE ASSESSMENT Y EAR 2005-06 RAISING THEREIN FOLLOWING GROUNDS:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) HAS GROSSLY ERRED IN CONFIRMING THE ACTION OF AO IN MAKING ADDITION OF RS. 1,69,907/- B Y TREATING THE AGRICULTURAL RECEIPTS OF ASSESSEE AS I NCOME WITHOUT APPRECIATING THE FACTS AND CIRCUMSTANCES OF THE CASE AND THE SUBMISSION MADE DURING THE COURSE OF APPELL ATE ITA NO. 526/JP/2015 M/S. NEEL KAMAL BIOFUEL TECHNOLOGIES (P) LTD. VS. ITO, WARD- 2(2) JAIPUR . 2 PROCEEDINGS. THUS THE ADDITION OF RS. 1,69,907/- DE SERVES TO BE DELETED. 1.1 THAT THE LD. CIT(A) HAS FURTHER ERRED IN IGNORI NG THE VITAL EVIDENCE SUBMITTED BY THE ASSESSEE DURING THE COURSE OF APPELLATE PROCEEDINGS AS ADDITIONAL EVIDE NCE U/R 46A WHICH SUFFICIENTLY ESTABLISH THE FACT OF AGRICU LTURAL ACTIVITIES CARRIED ON BY ASSESSEE. THUS THE ACTION OF LD. CIT(A) AS WELL AS OF AO DESERVES TO BE HELD BAD IN LAW AND THE ADDITION OF RS. 1,69,907/- DESERVES TO BE DELET ED. 1.2 THAT THE LD. CIT(A) HAS FURTHER ERRED IN UPHOLDING THE OBSERVATION OF THE AO THAT THE ASSESS EE HAD NOT CARRIED ON AGRICULTURAL ACTIVITY MERELY ON THE BASIS OF THE ALLEGATION THAT THE KHASRA/ GIRDAWARI REPORT OF TEH SILDAR COULD NOT BE SUBMITTED, THOUGH HE HAS ACCEPTED ALL THE EVIDENCES FILED BY ASSESSEE PROVING AGRICULTURE ACT IVITY, BEING OLD. THUS THE ADDITION OF RS. 1,69,907/- DESE RVES TO BE DELETED. 2.1 THE BRIEF FACTS OF THE CASE AS EMERGES FROM THE ORDER OF THE LD. CIT(A) IS REPRODUCED AS UNDER:- 2. THE FACTS OF THE CASE ARE THAT M/S. NEEL KAMAL BIOFUELS TECHNOLOGIES (P) LTD. HEREIN MENTIONED AS ASSESSEE FILED HIS RETURN OF INCOME ON 31-10-2005 DECLARING TOTAL INCOME OF RS. NIL. THE CASE WAS SELECTED FOR SCRUTINY AND AN ASSE SSMENT ORDER U/S 143(3) OF THE I.T. ACT, 1961 WAS PASSED ON 21-10-20 13 DETERMINING TOTAL INCOME AT RS. 1,69,910/-. CIT (A) VIDE ORDER DATED 28-01- 2011 CONFIRMED THE AOS ACTION, HOWEVER, IT JAIPUR VIDE ITA NO. 323/JP/2011 DATED 18-11-2011 SET ASIDE THE ORDER TO THE FILE OF THE AO WITH A DIRECTION TO RE-EXAMINE THE CLAIM OF AGRI CULTURAL INCOME ITA NO. 526/JP/2015 M/S. NEEL KAMAL BIOFUEL TECHNOLOGIES (P) LTD. VS. ITO, WARD- 2(2) JAIPUR . 3 AND DECIDE THE ISSUE ACCORDINGLY. HOWEVER, AO DID N OT ACCEPT ASSESSEE'S CONTENTION AND TREATED RS. 1,69,907/- AS INCOME FROM OTHER SOURCES. 2.2 IN FIRST APPEAL, THE LD. CIT(A) CONFIRMED THE A CTION OF THE AO BY OBSERVING AS UNDER:- 3.3 I HAVE DULY CONSIDERED THE REMAND REPORT AND REJOINDER FILED. I FIND THAT DOCUMENTARY EVIDENCES FILED BY SHRI BIMAL SHAH ARE QUITE RELEVANT FOR ADJUDICATION OF THIS CASE. HENCE, THEY ARE ADMITTED UNDER RULE 46A. THE ISSUES PERTAINING TO CLAIM OF AGRICULTURAL INCOME ARE BEIN G DISCUSSED IN PARA BELOW. GROUND NO. 1 & 2 MAINLY CHALLENGE ADDITION OF RS. 1,69,907/- UNDER THE HEAD INCOME FROM OTHER SOURCE S BY DISALLOWING THE CLAIM OF AGRICULTURAL INCOME. DURIN G APPELLATE PROCEEDINGS SHRI BIMAL SHAH, DIRECTOR OF ASSESSEE COMPANY FILED DOCUMENTARY EVIDENCES IN SUPPORT OF C LAIM OF AGRICULTURAL INCOME AND THE SAME WAS FORWARDED TO T HE AO FOR EXAMINATION. HERE, IT IS PERTINENT TO MENTION THAT ASSESSEE COMP ANY HAS TAKEN LAND ON LEASE AND SUBMITTED BILLS FOR FER TILIZERS, SEEDS ETC. BUT KHASRA/ GIRDAWARI REPORT OF TEHSILDA R IN SUPPORT OF GROWING OF PLANTS WERE NOT FURNISHED. S HRI BIMAL SHOWED HIS INABILITY TO PRODUCE THE SAME AS THE MAT TER IS VERY OLD, THEREFORE, ANY PHYSICAL REPORT IN THIS RE GARD IS NOT POSSIBLE. AO IN THE REMAND REPORT HAS ALSO OBJECTED THAT IN ABSENCE OF KHASRA/ GIRDAWARI REPORT, IT IS NOT POSS IBLE TO PROVE THAT LANDS TAKEN ON LEASE BY THE ASSESSEE COM PANY WERE ACTUALLY USED FOR AGRICULTURAL ACTIVITIES DURI NG THE YEAR UNDER CONSIDERATION. ACCORDINGLY, AOS ACTION IS JUSTIFIED, HENCE ADDITI ON IS SUSTAINED ITA NO. 526/JP/2015 M/S. NEEL KAMAL BIOFUEL TECHNOLOGIES (P) LTD. VS. ITO, WARD- 2(2) JAIPUR . 4 2.3 DURING THE COURSE OF HEARING, THE LD. AR OF THE ASSESSEE PRAYED FOR DELETION OF ADDITION OF RS. 1,69,907/- SUSTAINED BY THE LD. CIT(A). 2.4 THE LD. DR RELIED ON THE ORDERS OF THE AUTHORIT IES BELOW. 2.5 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS NOTED FROM THE RECORD TH AT THE ASSESSEE HAD SHOWN AGRICULTURAL INCOME ON THE LAND TAKEN ON LEAS E FROM SHRI BHARAT SINGH BUT THE FACTS OF THE CASE SUGGEST THAT THE AS SESSEE HAD FAILED TO PRODUCE SUFFICIENT EVIDENCES IN SUPPORT OF THE CLAI M FOR AGRICULTURAL INCOME FROM SUCH LEASED LAND. THE STATEMENT RECORDE D OF THE OWNER OF THE LAND SHRI BHARAT SINGH WAS INCONSISTENT. FURTHER, ASSESSEE'S DECLARATION REGARDING SALE PROCEEDS WAS ALSO NOT ESTABLISHED AS THE PRODUCTS WHICH WERE STATED TO BE SOLD I.E. ALOVERA JEOTRAOPHA AND MORINGA PLANTS ETC. WERE NOT SEASONAL CROPS. THERE IS A PERIOD FOR MATU RING SUCH PRODUCTS. MOREOVER, THE KHASRA, GIRDAWARI AND OTHER RELATED D OCUMENTS OF THE REVENUE AUTHORITIES DID NOT CONFIRM ANY GROWING OF CROP OF ALOVEERA, ASHVAGANDHA, MARINGO AND RATANJOT ON THESE LANDS. T HUS THE FACT AS TO WHETHER THE ASSESSEE HAD EARNED ANY AGRICULTURAL IN COME FROM THE AGRICULTURAL ACTIVITY ON THE LEASED LAND IS NOT PRO VED. HENCE, IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE, I CO NFIRM THE ACTION OF THE ITA NO. 526/JP/2015 M/S. NEEL KAMAL BIOFUEL TECHNOLOGIES (P) LTD. VS. ITO, WARD- 2(2) JAIPUR . 5 AUTHORITIES BELOW BY ASSESSING THE INCOME OF RS. 1, 69,907/- UNDER THE HEAD INCOME FROM OTHER SOURCES. THUS THE APPEAL OF THE ASSESSEE IS DISMISSED. 3.0 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26/10 /2016 SD/- HKKXPUN ( BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 26 /10/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. NEEL KAMAL BIOFUEL TECHNOLOGIES (P) LTD., , JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ITO, WARD- 2(2), JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 526/JP/2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ @ ASSISTANT. REGISTRAR