N. Ravindranath Reddy, Hyderabad V. DCIT, Central Circle-6, Hyderabad

ITA 726/HYD/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3271 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2002-2003
• Appeal Filed On: 25-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DISMISSED APPEAL FILED T
• Keywords: Search and seizure
• Section: 153A; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO.726/HYD/2010 : ASSESSMENT YEAR 2002 -03 N. RAVINDRANATH REDDY, HYDERABAD. (PAN:AAPPN 8552 P) VS DCIT, CENTRAL CIR.-6, HYDERABAD. (APPELLANT) (RESPONDENT) APPELLANT: NONE RESPONDENT: SRI DIWAKAR PRASAD O R D E R PER AKBER BASHA, AM:- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE CIT (A)-I, HYDERABAD DATED 7-2-2011 AND IT PERTAINS TO THE ASSESSMENT YEAR 2002-03. NONE APPEARED ON BE HALF OF THE ASSESSEE DURING THE COURSE OF HEARING OF THIS APPEAL . HENCE, WE PROCEED TO DISPOSE OF THIS APPEAL EX-PARTE ON MERITS, AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT SEARCH A ND SEIZURE OPERATIONS UNDER SECTION 132 OF THE I T ACT, 1961 WERE CONDUCTED AT THE RESIDENTIAL PREMISES OF THE ASSESSEE ON 17-10- 207. CONSEQUENT TO THE SEARCH AND SEIZURE OPERATIONS , A NOTICE UNDER SECTION 153A OF THE ACT DATED 27-10-2008 FOR TH E ITA NO.726 OF 2011 RAVINDRANATH REDDY, HYD. ====================== 2 ASSESSMENT YEARS 2002-03 TO 2007-08 WAS ISSUED AND D ULY SERVED ON THE ASSESSEE. IN RESPONSE TO THE NOTICE, THE ASS ESSEE FILED HIS RETURN OF INCOME FOR THE ASSESSMENT YEAR UNDER CONSIDER ATION ON 26-11-2008 ADMITTING TOTAL INCOME OF RS.1,55,000/- AND AGRICULTURAL INCOME OF RS.50,000/-. THE ASSESSEE SHO WN AGRICULTURAL INCOME OF RS.50,000/- DURING THE YEAR UNDE R CONSIDERATION AND NO SATISFACTORY EVIDENCE IN THE FORM OF EXPENDITURE MADE FOR TILLING, CULTIVATION, SALE OF A GRICULTURAL PRODUCE, ETC., WAS PRODUCED BEFORE THE ASSESSING OFFI CER FOR THE ABOVE AGRICULTURAL INCOME. HENCE, THE AGRICULTURAL IN COME OF RS.50,000/- WAS TREATED AS INCOME FROM OTHER SOURCES B Y THE ASSESSING OFFICER. AGGRIEVED AGAINST THE ORDER OF THE ASSESSING OFFICER, THE ASSESSEE WENT IN APPEAL, BEFORE THE CIT (A). ON APPEAL, THE CIT (A) CONFIRMED THE STAND TAKEN BY THE ASSESSING OFFICER AND DISMISSED THE APPEAL FILED BY THE ASSESS EE. FURTHER AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 3. THE ONLY EFFECTIVE GROUND OF APPEAL RAISED IN T HIS APPEAL IS WITH REGARD TO TREATMENT OF AGRICULTURAL I NCOME OF RS.50,000/- AS INCOME FROM OTHER SOURCES. THE ASSESS EE RAISED GROUNDS CONTENTING THAT THE ORDER OF THE FIRST APPELLA TE AUTHORITY IS ERRONEOUS BOTH ON FACTS AND IN LAW AND BY UPHOLDIN G THE TREATMENT OF AGRICULTURAL INCOME, AMOUNTING TO RS.50,0 00/- AS INCOME FROM OTHER SOURCES AND FURTHER CONTENDED THAT CIT (A) ERRED BY UPHOLDING THE ACTION OF THE ASSESSING OFFIC ER TREATING THE AGRICULTURAL INCOME AS INCOME FROM OTHER SOURCES IN AN ASSESSMENT COMPLETED UNDER SECTION 153A OF THE ACT, WITHOUT ANY ITA NO.726 OF 2011 RAVINDRANATH REDDY, HYD. ====================== 3 MATERIAL ON RECORD, GATHERED EITHER DURING SEARCH OR SUB SEQUENT THERETO. ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW, THE CIT (A) ERRED, BY UPHOLDING THE TREATMENT OF AGRICULTURAL INCOME AS INCOME FROM OTHER SOURCES, ONLY ON THE GROUN D THAT THERE WAS NO EVIDENCE IN SUPPORT OF INCOME AND EXPEN DITURE. WHILE HOLDING SO, HE FAILED TO CONSIDER AND APPRECIA TE THE GENERAL PRACTICES PREVALENT IN THE AGRICULTURE SECTOR, WHICH IS THE MOST UNORGANIZED SECTOR IN INDIA, AND THE CERTIFICATES FROM THE VILLAGE AUTHORITIES IN SUPPORT OF THE LAND HOLDING, THE ACTUA L CULTIVATION THEREOF AND THE PROBABLE INCOME THERE FROM AND THE CI T (A) ERRED BY UPHOLDING THE TREATMENT OF AGRICULTURAL INCOME AS I NCOME FROM OTHER SOURCES, ONLY ON THE GROUND OF DISBELIEF, DESPIT E PRODUCTION OF CERTIFICATES FROM THE VILLAGE AUTHORITIES IN SUPPOR T OF THE LAND HOLDING, THE ACTUAL CULTIVATION THEREOF AND THE PROBA BLE INCOME THERE FROM. IT IS CONTENDED THAT THE CIT (A) BY HOLD ING THAT THE DECISION OF THE TRIBUNAL, HYDERABAD, IN THE CASE OF SRI T.C. REDDY IN ITA NO.469/HYD/2009 IS NOT APPLICABLE TO THE FACTS OF THE ASSESSEES CASE. ON THE FACTS AND IN THE CIRCUMSTAN CES OF THE CASE AND IN LAW, THE LEARNED CIT(A) ERRED BY UPHOLDING THE TREATMENT OF AGRICULTURAL INCOME AS INCOME FROM OTHER SOURCES, ON TH E GROUND THAT AN IDENTICAL ISSUE WAS DECIDED BY HIM IN ASSES SEES OWN CASE FOR ASST. YEAR 2006-07. 4. ON THE OTHER HAND, THE LEARNED DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE AUTHORITIES B ELOW. ITA NO.726 OF 2011 RAVINDRANATH REDDY, HYD. ====================== 4 5. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNED DEPARTMENTAL REPRESENTATIVE AND PERUSED THE MATE RIAL AVAILABLE ON RECORD. WE FIND THAT THE CIT (A) IS NO T JUSTIFIED IN UPHOLDING THE TREATMENT OF AGRICULTURAL INCOME AS INCO ME FROM OTHER SOURCES, ONLY ON THE GROUND THAT THERE WAS NO EV IDENCE IN SUPPORT OF INCOME AND EXPENDITURE. IT APPEARS THAT T HE ASSESSEE PRODUCED CERTIFICATES BEFORE THE LOWER AUTHORITIES IN S UPPORT OF THE LAND HOLDING, THE ACTUAL CULTIVATION THEREOF AND TH E PROBABLE INCOME THERE FROM. IN SPITE OF THE ABOVE, THE DEPART MENT TREATED THE AGRICULTURAL INCOME CLAIMED BY THE ASSESSEE AS IN COME FROM OTHER SOURCES, ONLY ON SURMISES, SUSPICION AND CONJECT URES. AFTER CONSIDERING THE TOTALITY OF FACTS AND THE CIRCUMSTAN CES OF THE CASE AND GOING THROUGH THE ORDERS OF THE AUTHORITIES, WE FI ND THAT THE LOWER AUTHORITIES ARE NOT JUSTIFIED IN TREATING THE AG RICULTURAL INCOME AMOUNTING TO RS.50,000/- AS INCOME FROM OTHER SOURCES. ACCORDINGLY, WE DELETE THE SAME AND ALLOW THE GROUNDS RAISED BY THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER WAS PRONOUNCED IN THE COURT ON 08- 06-2011. SD/- SD /- (G.C. GUPTA) (AKBER BASHA) VICE PRESIDENT ACCOUNTANT MEMBER DT. 08-06-2011. JMR * ITA NO.726 OF 2011 RAVINDRANATH REDDY, HYD. ====================== 5 COPY FORWARDED TO: 1. 2. 3. 4. 5. C/O RADHA REALTY CORPORATION (INDIA) P. LTD., BESIDES SVM JUBILEE HILLS, HYDERABAD. DCIT, CENTRAL CIR-6, AAYAKAR BHAVAN, HYDERABAD. CIT (A)-I, HYDERABAD. CIT, AP, HYDERABAD. THE DR, ITAT, HYDERABAD.