The ITO, Vapi Ward-1, Vapi V. Shri C.J. Rathod, U.T. of Dadra & Nagar Haveli

ITA 726/AHD/2007

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 6670 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 30-03-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 15-02-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUMAR HRISHIKESH
• Assessee Lawyers: M K PATEL
• Keywords: Income from undisclosed sources

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND N. S. SAINI, AM) ITA NO.726/AHD/2007 A. Y: 2004-05 THE INCOME TAX OFFICER, VAPI, WARD -1, AJIT NAGAR, CHALA, VAPI VS SHRI C. J. RATHOD, HUF AT & POST NAROLI, HAWELI FALIA, MAIN ROAD, NAROLI, UT OF DADRA & NAGAR HAVELI (APPELLANT) (RESPONDENT) APPELLANT BY KUMAR HRISHIKESH, DR RESPONDENT BY SHRI M. K. PATEL, AR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST DIFFERENT ORDER OF THE CIT(A), VALSAD DATED 13-11-2006 FOR ASSESSMENT YEAR 2004-05 OF THE FOLLOWING EFFECTIVE GROUNDS: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) HAS ERRED IN HOLDING THE LAND IN THE STATUS OF HUF. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LEARNED CIT(A) HAS ERRED IN DIRECTING THE A. O. TO DELETE ADDITIONS MADE BY TREATING AGRICULTURAL RECE IPTS AS INCOME FROM UNDISCLOSED SOURCES. 2. IT WAS SUBMITTED BEFORE THE LEARNED CIT(A) THAT THE ASSESSEES STATUS AS HUF HAS BEEN GRANTED BY THE LEARNED CIT( A) FROM THE ASSESSMENT YEAR 1997-98. THE LEARNED CIT(A) ACCEPTE D THE CONTENTION OF THE ASSESSEE THAT IN EARLIER YEARS THE STATUS OF TH E ASSESSEE HAS BEEN UPHELD AS HUF. AS REGARDS ADDITION ON MERIT TREATIN G THE AGRICULTURAL INCOME AS CLAIMED BY THE ASSESSEE IN HIS RETURN OF INCOME FROM NON- AGRICULTURAL ACTIVITIES, THE LEARNED CIT(A) NOTED T HAT THE ASSESSEE HAS GIVEN COPIES OF BILLS OF SALE OF AGRICULTURAL PRODU CTS AND COMPLETE DETAILS OF THE EXPENDITURE. THE LEARNED CIT(A) ALSO NOTED T HAT THE AO HAS NOT ITA NO. 726/AHD/2007 SHRI C. J. RATHOD 2 DENIED THE QUANTUM OF AGRICULTURAL INCOME DISCLOSED IN THE RETURN OF INCOME BY THE ASSESSEE IN ANY MANNER. THE LEARNED C IT(A) ALSO NOTED THAT APPARENTLY THE AO HAS NOT DISPUTED THE GENUINE NESS OF THE BOOKS OF ACCOUNT OR OTHER DETAILS FILED BY THE ASSESSEE DURI NG THE COURSE OF ASSESSMENT PROCEEDINGS, THEREFORE, THE LEARNED CIT( A) CONSIDERING THE EARLIER ORDER IN THE CASE OF THE ASSESSEE DISALLOWE D 50% OUT OF THE EXPENDITURE AND DELETED THE REMAINING ADDITION. THE APPEAL OF THE ASSESSEE WAS ALLOWED PARTLY. 3. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUT SET SUBMITTED THAT THE STATUS OF THE ASSESSEE HAS BEEN ACCEPTED AS HUF IN EARLIER YEARS AND DEPARTMENTAL APPEALS HAVE BEEN DISMISSED BY THE TRI BUNAL FOR SEVERAL YEARS VIDE ORDER DATED 22-02-2010. COPY OF THE CONS OLIDATED ORDER IN THE CASE OF THE ASSESSEE IS FILED ON RECORD. THE LEARNE D DR DID NOT DISPUTE THE ABOVE FACTS. THE LEARNED COUNSEL FOR THE ASSESS EE FURTHER SUBMITTED THAT THE LEARNED CIT(A) ON THE BASIS OF FINDING GIV EN AGAINST THE ASSESSEE IN ASSESSMENT YEAR 2003-04 MADE THE ADDITION ON MER IT TREATING THE INCOME FROM NON-AGRICULTURAL ACTIVITIES BECAUSE OF THE STATUS OF THE ASSESSEE AS HUF WAS DISPUTED BY THE REVENUE DEPART MENT. HE HAS SUBMITTED THAT SINCE NO SPECIFIC FINDING IS GIVEN A GAINST THE ASSESSEE AND THAT THE DEPARTMENTAL APPEAL FOR ASSESSMENT YEAR 20 03-04 IS ALSO DISMISSED BY THE TRIBUNAL, THEREFORE, THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE. THE LEARNED DR DID NOT DISP UTE THE SUBMISSION OF THE LEARNED COUNSEL FOR THE ASSESSEE. 4. ON CONSIDERATION OF THE RIVAL SUBMISSIONS, WE AR E OF THE VIEW THAT THERE IS NO MERIT IN THE DEPARTMENTAL APPEAL. IN TH E EARLIER YEARS, THE LEARNED CIT(A) ACCEPTED THE STATUS OF THE HUF WHICH IS CONFIRMED BY THE TRIBUNAL VIDE ORDER DATED 22-02-2010 WHILE DISPOSI NG OF SEVERAL APPEALS OF THE ASSESSEE FOR SEVERAL ASSESSMENT YEARS ON THE SAME MATER IN ISSUE. THE DEPARTMENTAL APPEAL FOR ASSESSMENT YEAR 2003-04 WAS ALSO ITA NO. 726/AHD/2007 SHRI C. J. RATHOD 3 DISMISSED. THE AO ON MERIT MADE THE ADDITION BECAUS E THE STATUS OF THE ASSESSEE WAS DENIED IN ASSESSMENT YEAR 2003-04. NO OTHER SPECIFIC FINDING IS GIVEN AGAINST THE ASSESSEE TREATING THE AGRICULTURAL INCOME TO BE NON-AGRICULTURAL INCOME. IN THE ABSENCE OF ANY S PECIFIC FINDING, THE LEARNED CIT(A) WAS JUSTIFIED IN ALLOWING THE APPEAL OF THE ASSESSEE PARTLY WHEREBY ADDITION WAS DELETED ON MERIT. CONSIDERING THE ABOVE DISCUSSION, WE DO NOT FIND ANY MERIT IN THE DEPARTM ENT APPEAL. THE SAME IS ACCORDINGLY DISMISSED. 5. AS A RESULT, THE DEPARTMENTAL APPEAL IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 01-04-2010. SD/- SD/- (N. S. SAINI) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 01- 04-2010 LAKSHMIKANT/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD