Ram Sagar Pandey, Lucknow V. Joint Commissioner of Income Tax (OSD), Lucknow

ITA 671/LKW/2014

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7896 (ITAT-LUCKNOW)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 19-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALOK MITRA
• Assessee Lawyers: YOGESH AGRAWAL
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI. A. K. GARODIA, ACCOUNTANT MEMBER ITA NO.671/LKW/2014 ASSESSMENT YEAR:2006-07 RAM SAGAR PANDEY LUCKNOW V. JCIT(OSD) RANGE I, LUCKNOW PAN/PAN:AGKPP0856H (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI. YOGESH AGRAWAL, ADVOCATE RESPONDENT BY: SHRI. ALOK MITRA, D.R. DATE OF HEARING: 29 09 2014 DATE OF PRONOUNCEMENT: 16 10 2014 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A), INTER ALIA, ON VARIOUS GROUNDS, WHICH ARE AS UNDER:- 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-I, LUCKNOW [HERE-IN-AFTER REFERRED TO AS THE LD. CIT (A)'S] ERRED ON FACTS AND IN LAW IN CONFIRMING THE ORDER OF THE LD. A.O. AND IN NOT AFFORDING ANY OPPORTUNITY TO THE APPELLANT TO HAVE ITS SAY OR MAKE NECESSARY COMPLIANCE OF THE REASONS RELIED UPON BY HIM WHILE PASSING THE PRESENT ORDER. WITHOUT PREJUDICE TO GROUND NO.1 TAKEN ABOVE:- 2. THE LD. CIT (A)'S ERRED ON FACTS AND IN LAW IN CONFIRMING THE ADDITION OF RS.30,15,000/- BY TREATING THE AGRICULTURAL INCOME AS INCOME UNDER THE HEAD OTHER SOURCES AND IN NOT ACCEPTING THE EVIDENCES OF HOLDING OF AGRICULTURAL LAND AND IN :- 2 -: APPRECIATING THAT AGRICULTURAL ACTIVITIES WERE ACTUALLY BEING CONDUCTED ON THEM AND THUS THE INCOME SO SHOWN AND DISCLOSED UNDER THIS HEAD IS ACTUALLY INCOME EARNED FROM AGRICULTURAL OPERATIONS AND THUS THE ADDITION MAY KINDLY BE ORDERED TO BE DELETED. 3. IN NOT DELETING THE ADDITION OF RS.30,15,000/- THE LD. CIT (A)'S GROSSLY ERRED ON FACTS AND IN LAW IN CHOOSING TO IGNORE THE FACT THAT THE AGRICULTURAL INCOME SO SHOWN WAS ACTUALLY EARNED FROM AGRICULTURAL OPERATIONS AND THAT IT WAS NOT DIVERSION OF MONEY TO EVADE TAX AND AS THE ADDITION IS MADE IS WHOLLY UNJUSTIFIED AND BAD-IN-LAW THE ORDER CONFIRMING SUCH BASELESS FINDINGS MAY KINDLY BE ORDERED TO BE QUASHED AND THE ADDITION SO MADE BE ORDERED TO BE DELETED 4. THE ADDITIONS SO CONFIRMED ARE VERY VERY HIGHLY EXCESSIVE, CONTRARY TO FACTS, LAWS AND PRINCIPLES OF NATURAL JUSTICE AND FAIR- PLAY AND THUS MAY KINDLY BE ORDERED TO BE QUASHED/ANNULLED. 2. DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE LD. CIT(A) HAS ADJUDICATED THE APPEAL EX- PARTE WITHOUT AFFORDING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND CONFIRMED THE ADDITION OF RS.30.15 LAKHS SHOWN BY THE ASSESSEE AS AGRICULTURAL INCOME. THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE ORDER OF THE LD. CIT(A) WITH THE SUBMISSION THAT THOUGH THE LD. CIT(A) HAS CONSIDERED THE EVIDENCE OF REVENUE RECORD I.E. KHASRA AND KHATAUNI, BUT HE HAS NOT TAKEN INTO ACCOUNT THE FACT THAT THE ASSESSEE OWNS SUBSTANTIAL LAND, OUT OF WHICH HE EARNS SUBSTANTIAL AMOUNT OF AGRICULTURAL INCOME. THE LD. CIT(A) HAS OUTRIGHTLY REJECTED THE CLAIM OF THE ASSESSEE ON THE GROUND THAT THE ASSESSEE HAS NOT PRODUCED OTHER EVIDENCE FOR EARNING OF AGRICULTURAL INCOME. THE LD. COUNSEL FOR THE ASSESSEE HAS :- 3 -: FURTHER CONTENDED THAT THE AGRICULTURAL OPERATION IS RECORDED IN THE REVENUES RECORD AND COPIES OF THE SAME WERE FILED BEFORE THE LOWER AUTHORITIES, BUT ON ACCOUNT OF AILMENT, THE ASSESSEE COULD NOT APPEAR BEFORE THE LD. CIT(A) AND THE LD. CIT(A) HAS DECIDED THE APPEAL EX-PARTE AGAINST THE ASSESSEE. IN SUPPORT OF HIS CONTENTION, THE LD. COUNSEL FOR THE ASSESSEE HAS FILED COPIES OF THE MEDICAL RECORD WITH REGARD TO THE TREATMENT OF THE ASSESSEE AT THE RELEVANT POINT OF TIME WITH THE SUBMISSION THAT IN THE INTEREST OF JUSTICE, THE MATTER MAY BE RESTORED BACK TO THE FILE OF THE LD. CIT(A) FOR RE-ADJUDICATION OF THE IMPUGNED ISSUE AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 3. THE LD. D.R., ON THE OTHER HAND, HAS SUBMITTED THAT THE ASSESSEE DID NOT APPEAR DESPITE AFFORDING VARIOUS OPPORTUNITIES OF BEING HEARD BY THE LD. CIT(A), THEREFORE, NO INTERFERENCE IS CALLED FOR IN THE ORDER OF THE LD. CIT(A). 2. HAVING CAREFULLY EXAMINED THE ORDER OF THE LD. CIT(A) IN THE LIGHT OF THE LD. COUNSEL FOR THE ASSESSEES SUBMISSIONS, WE FIND THAT UNDISPUTEDLY NUMBER OF OPPORTUNITIES WERE AFFORDED TO THE ASSESSEE, BUT THE ASSESSEE COULD NOT MAKE COMPLIANCE ON ACCOUNT OF HIS ILLNESS. THE LD. CIT(A) HAS ADJUDICATED THE ISSUE OF AGRICULTURAL INCOME SHOWN BY THE ASSESSEE BUT DID NOT ACCEPT THE EXPLANATION OF THE ASSESSEE WITH REGARD TO EARNING OF AGRICULTURAL INCOME IN THE ABSENCE OF OTHER DOCUMENTARY EVIDENCE, THOUGH ASSESSEE HAS FILED COPIES OF KHASRA AND KHATONI OF THE LAND SHOWING OWNERSHIP OF THE LAND BY THE ASSESSEE. IN AGRICULTURAL OPERATION, THE REVENUE RECORD IS AN IMPORTANT PIECE OF EVIDENCE WHEREFROM A CONCLUSION CAN BE DRAWN WITH REGARD TO THE AGRICULTURAL OPERATION OF THE AGRICULTURAL LAND AND ALSO ABOUT EARNING OF AGRICULTURAL INCOME. SINCE THE LD. CIT(A) HAS NOT EXAMINED THIS REVENUE RECORD BUT CONFIRMED THE ADDITION WITHOUT GIVING CREDIT OF AGRICULTURAL HOLDINGS OWNED BY THE ASSESSEE, WE ARE OF THE VIEW THAT THIS MATTER REQUIRES A FRESH ADJUDICATION BY THE LD. CIT(A). ACCORDINGLY, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER :- 4 -: TO HIS FILE WITH A DIRECTION TO RE-ADJUDICATE THE ISSUE AFRESH AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 3. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- [A. K. GARODIA] [SUNIL KUMAR YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 16 TH OCTOBER, 2014 JJ:3009 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR