ASST CIT 11(2), MUMBAI V. KESHAV G. MENON, MUMBAI

ITA 5280/MUM/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 8299 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 30-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASGHAR ZAIN
• Assessee Lawyers: A K GHOSH

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A , BENCH MUMBAI , BEFORE SHRI R.C.SHARMA , A M & SHRI SANJAY GARG , J M ITA N O. 5280 / MUM/20 1 3 ( ASSESSMENT YEAR : 2010 - 2011 ) ACIT - 11(2), MUMBAI VS. SHRI KESHAV G. MENON. , 4 JAIN CHAMBERS, 73/75 TARMIND LANE, OPP. NAGINDAS MASTER ROAD, FORT, MUMBAI - 400 001 PAN/GIR NO. : A A LPM 0091 L ( APPELLANT ) .. ( RESPONDENT ) /REVENUE BY : SHRI ASGHAR ZAIN /ASSESSEE BY : SHRI A.K.GHOSH DATE OF HEARING : 1 ST DECEMBER , 201 4 DATE OF PRONOUNCEMENT 10 TH DEC., 201 4 O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) DATED 27 - 5 - 2013 FOR THE ASSESSMENT YEAR 2010 - 2011 , IN THE MATTER OF ORDER PASSED U/S. 143 ( 3 ) OF THE I.T. ACT . 2. T HE ONLY GRIEVANCE OF THE REVENUE RELATES TO DELETION OF ADDITION OF RS. 12,50,000/ - MADE ON ACCOUNT OF AGRICULTURAL INCOME. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT ASSESSEE HAS SHOWN RS.25, 02,500/ - AS AGRICULTURAL INCOME. THE ASSESSEE WAS ASKED TO GIVE DETAILS OF AGRICULTURAL LAND, COPY OF DOCUMENT 7 - 12 AND DOCUMENTS TO PROVE THAT AGRICULTURAL ACTIVITY HAS BEEN ITA NO. 5280 / 1 3 2 CARRIED ON THE SAID LAND. THE ASSESSEE VIDE LETTER DATED 21 - 11 - 2012 SUBMITTED VARIOUS DETAILS OF THE DOCUM ENTS SO DESIRED . THE AO OBSERVED THAT ALL THE BILLS/VOUCHERS COULD NOT BE PRODUCED BY THE ASSESSEE, THEREFORE, HE TREATED 50% OF AGRICULTURAL INCOME AS INCOME FROM OTHER SOURCES. THE AO ALSO STATED THAT THE AR OF THE ASSESSEE HAS AGREED TO TAKE 50% OF THE TOTAL AGRICULTURAL INCOME AS TAXABLE INCOME. AGAINST THE DISALLOWANCE OF 50% AGRICULTURAL INCOME, ASSESSEE APPROACHED TO CIT(A). 4. BY THE IMPUGNED ORDER, CIT(A) DELETED THE ADDITION MADE BY THE AO AFTER RECORDING HIS FINDINGS AT PARA 1.3 OF HIS APPELLATE ORDER. 5. LEARNED DR RELIED ON THE ORDER OF AO. 6. LEARNED AR CONTENDED THAT SIMILAR DISALLOWANCE OF 50% ON AGRICULTURAL INCOME WAS MADE BY AO IN THE IMMEDIATELY PRECEDING ASSESSMENT YEAR 2009 - 2010. THE CIT(A) VIDE ITS ORDER DATED 22 - 10 - 2012 ALLOWED THE A PPEAL OF THE ASSESSEE, HOWEVER, THE DEPARTMENT HAS ACCEPTED THE ORDER OF CIT(A) AND DID NOT FILE ANY APPEAL BEFORE THE TRIBUNAL. 7. WE HAVE CONSIDERED RIVAL CONTENTIONS, CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND FROM THE RECORD T HAT ASSESSEE HAD SHOWN GROSS RECEIPT OF RS. 30,01,772/ - OUT OF SALE PROCEEDS OF RICE, BANANA, COCONUT, CHICKOO, MANGO, JACKFRUIT AND OTHER CULTIVATION. AGAINST THE GROSS AGRICULTURAL RECEIPT, ASSESSEE HAS INCURRED EXPENDITURE UNDER THE HEAD FERTILIZER AND S EEDS AMOUNTING TO RS. 1,20, 071/ - , LABOUR CHARGES OF RS.3,05,875/ - , TOOLS AND EQUIPMENTS OF RS.42,798/ - AND OTHER EXPENSES OF RS.30,528/ - . THUS, THE NET INCOME FROM AGRICULTURAL ACTIVITY WAS SHOWN AT RS. 25,02,500/ - . HOWEVER, IGNORING THE EXPENDITURE INCURRED ITA NO. 5280 / 1 3 3 BY ASSESSEE THE AO HAS DISALLOWED 50% OF THE NET RECEIPT TREATING THE SAME AS NON - AGRICULTURAL INCOME WITHOUT BRINGING ANY ADVERSE MATERIAL ON RECORD. THE CIT(A) DELETED THE ADDITION AFTER APPRAISING THE EVIDENCE ON RECORD WITH REGARD TO THE SIZE OF LAND HOLDING BY THE ASSESSEE , THE AGRICULTURAL OPERATIONS CARRIED THEREON AND VARIOUS CROPS PRODUCED AND SOLD . AFTER APPLYING THE PROPOSITION OF LAW LAID DOWN BY THE HONBLE SUPREME COURT IN CASE OF DHOKESHWARI COTTON MILLS LTD. VS. CIT, 26 ITR 775 (SC), WHERE IN IT WAS HELD THAT THE ITO IS NOT ENTITLED TO MAKE A PURE GUESS AND MAKE ASSESSMENT WITHOUT ANY REFERENCE TO ANY EVIDENCE OR MATERIAL AT ALL, T HERE MUST BE SOMETHING TO GET MORE THAN - BARE SUSPICION TO SUPPORT THE ASSESSMENT , THE CIT(A) DELETED THE ESTIMAT ED ADDITION MADE BY AO. THE CIT(A) OBSERVED THAT THE AO HAS NOT ASSIGNED ANY PLAUSIBLE REASON FOR MAKING ESTIMATED ADDITION. AS PER FINDING RECORDED BY CIT(A), THE AO COULD NOT BROUGHT ON RECORD ANY MATERIAL TO JUSTIFY DISALLOWANCE OF RS. 12,50,000/ - BY TRE ATING THE SAME AS NON - AGRICULTURAL INCOME. T HE DEPARTMENT COULD NOT BRING ANY POSITIVE MATERIAL ON RECORD TO DISLODGE THE FINDING RECORDED BY THE CIT(A). ACCORDINGLY, WE DO NOT FIND ANY REASON TO INTERFERE IN THE FINDING RECORDED BY CIT(A) FOR DELETING THE ADDITION MADE BY THE AO. 8 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 10/12 / 201 4 . 10/ 12 / 2014 SD/ - SD/ - ( ) ( SANJAY GARG ) ( ) ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 10/12 /2014 /PKM , PS ITA NO. 5280 / 1 3 4 COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( A SSTT. REGISTRAR) / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A), MUMBAI. 4. / CIT 5. / DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//