Smt. Managala Suresh Bafna, Ahmednagar V. Income-tax Officer,

ITA 740/PUN/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2931 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 9 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 21-01-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 11-04-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: HITENDRA NINAWE
• Keywords: Income from undisclosed sources; Earning of tax free income; Non compliance

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE . . , ! , # $ BEFORE SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO.740/PN/2014 #& & / ASSESSMENT YEAR : 2009-10 SMT. MANGALA SURESH BAFNA, MAIN ROAD, VAMBORI, TALUKA RAHURI, DIST. AHMEDNAGAR PAN NO. ANJPB4615Q . / APPELLANT V/S ITO, WARD-4, AHMEDNAGAR CIRCLE, ADMEDNAGAR . / RESPONDENT / ASSESSEE BY : NONE / REVENUE BY : SHRI HITENDRA NINAWE / ORDER PER R.K. PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 07-01-2014 OF THE CIT(A)-IT/TP, PUNE RELATING TO ASSESSMENT YEAR 2009-10. 2. THIS APPEAL WAS FIRST FIXED FOR HEARING ON 17-08-2015. THE NOTICE ISSUED THROUGH RPAD WAS DULY SERVED ON THE ASSESSEE (ACKNOWLEDGEMENT PLACED ON RECORD). SINCE NONE APPEARE D ON THAT DATE THE CASE WAS ADJOURNED TO 19-10-2015 BY ISSUE OF FRES H NOTICE THROUGH / DATE OF HEARING :21.01.2016 / DATE OF PRONOUNCEMENT:22.01.2016 2 ITA NO.740/PN/2014 RPAD WHICH WAS DULY SERVED ON THE ASSESSEE AND THE A CKNOWLEDGEMENT IS PLACED ON RECORD. ON 19-10-2015, AGAIN NONE APPEARED ON BEHALF OF ASSESSSEE NOR ANY PETITION SEEKING ADJOURNMENT OF THE C ASE WAS FILED FOR WHICH THE CASE WAS ADJOURNED TO 21-01-2016 BY ISSUE O F FRESH NOTICE. THE NOTICE WAS DULY SERVED ON THE ASSESSEE THROUGH R PAD AND THE ACKNOWLEDGEMENT IS PLACED ON RECORD. HOWEVER, WHEN THE NAME OF THE ASSESSEE WAS CALLED NONE APPEARED ON BEHALF OF THE ASSES SEE NOR ANY PETITION SEEKING ADJOURNMENT OF THE CASE WAS FILED. IT WAS FURTHER SEEN THAT THE APPEAL WAS TIME BARRED BY 26 DAYS. IN VIEW OF THE NON COMPLIANCE BY THE ASSESSEE TO THE STATUTORY NOTICES ISS UED, WE PROCEED TO DECIDE THE APPEAL ON THE BASIS OF MATERIAL AVAILABLE ON R ECORD AND AFTER HEARING THE LD. DEPARTMENTAL REPRESENTATIVE. 3. THE ASSESSEE IN THE GROUNDS OF APPEAL HAS CHALLENGED THE ORDER OF THE CIT(A) IN CONFIRMING THE ADDITION OF RS.11,38,468/- MADE B Y THE AO ON ACCOUNT OF UNDISCLOSED SOURCES. 4. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSSEE IS AN INDIVIDUAL AND DERIVES INCOME FROM THE PARTNERSHIP FIRM, INTEREST INCOM E AND AGRICULTURAL INCOME. SHE FILED HER RETURN OF INCOME ON 31-03-2010 DECLARING TOTAL INCOME OF RS.27,213 AND AGRICULTU RAL INCOME OF RS.24,01,645/-. DURING THE COURSE OF ASSESSMENT PROCEEDINGS TH E AO ASKED THE ASSESSEE TO SUBSTANTIATE THE AGRICULTURAL INCO ME OF RS.24,01,645/- DECLARED IN THE RETURN. THE ASSESSEE SUB MITTED THE DETAILS OF GROSS RECEIPTS OF AGRICULTURAL INCOME TO THE EXTE NT OF RS.18,32,411/- AND EXPENDITURE INCURRED FOR EARNING THE SA ME AT RS.5,69,234/-. THUS, THE NET AGRICULTURAL INCOME COMES TO RS.12,63,177/-. HOWEVER, THE ASSESSEE HAD SHOWN NET AGR ICULTURAL INCOME OF RS.24,01,645/- IN THE RETURN OF INCOME. IN ABSENC E OF ANY 3 ITA NO.740/PN/2014 PROPER EXPLANATION GIVEN BY THE ASSESSEE THE AO ADDED THE DIFFERENCE OF RS.11,38,468/- TO THE TOTAL INCOME OF THE ASSESSEE AS HER INCOME FROM UNDISCLOSED SOURCES. 5. BEFORE CIT(A) IT WAS SUBMITTED THAT ALTHOUGH THE NET A GRICULTURAL INCOME IS RS.12,63,177/- WHICH WAS CREDITED IN THE BOOKS O F ACCOUNT, HOWEVER, WHILE FILING THE RETURN OF INCOME THE ACCOUNTANT HA D WRONGLY GIVEN HIGHER FIGURE OF THE AGRICULTURAL RECEIPTS BY ADDING SO ME OF THE SALE PATTIES OF HER HUSBAND. THERE WAS NO INTENTION TO I NCREASE ANY AGRICULTURAL RECEIPTS AND IT WAS JUST A CLERICAL MISTAKE. 6. BASED ON THE ARGUMENTS ADVANCED BY THE ASSESSEE THE LD.CIT(A) OBSERVED THAT THE ADDITION OF RS.11,38,468/- IS A CLERICAL MIS TAKE AND THE ASSESSEE HAS ONLY CREDITED RS.12,63,177/- IN THE BOO KS OF ACCOUNT. HOWEVER, HE HELD THAT HAD THE AO NOT DETECTED THIS CLER ICAL MISTAKE, THE ASSESSEE WOULD HAVE ENJOYED THE EXEMPT INCOME TO THE EXTENT OF RS.11,38,468/-. HE ACCORDINGLY CONFIRMED THE ADDITION OF RS.11,38,468/- MADE BY THE AO. 7. AGGRIEVED WITH SUCH ORDER OF THE CIT(A) THE ASSESSEE IS IN APPEAL BEFORE US. 8. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE A ND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THE ASSESSEE FILED HER RETURN OF INCOME DECLARING TOTAL INCOME OF RS.27,213/-AND AGRICULTURAL IN COME OF RS.24,01,645/-. ON BEING QUESTIONED BY THE AO TO EXPLAIN THE AGRICULTURAL INCOME, THE ASSESSEE GAVE THE DETAILS OF GROSS RECEIPTS OF AGRICULTURAL INCOME AND EXPENDITURE FOR EARNING THE SAME A CCORDING TO WHICH THE NET AGRICULTURAL INCOME COMES TO RS.12,63,177/-. THE AO, THEREFORE, MADE ADDITION OF RS.11,38,468/- BEING THE DIFFERENC E BETWEEN 4 ITA NO.740/PN/2014 THE AGRICULTURAL INCOME DECLARED IN THE RETURN AND THE AG RICULTURAL INCOME EXPLAINED DURING THE COURSE OF ASSESSMENT PROCEED INGS. BEFORE CIT(A) THE ASSESSEE ADMITTED THAT THE AGRICULTURAL INCOME SHOWN AT RS.24,01,645/- IS NOT CORRECT AND THE CORRECT AGRICULTURA L INCOME IS RS.12,63,177/-. WE FIND THE CIT(A) UPHELD THE ADDITION MADE B Y THE AO ON THE GROUND THAT BUT FOR THE DETECTION BY THE AO, TH E ASSESSEE WOULD HAVE ENJOYED THE BENEFIT OF TAX FREE INCOME OF RS.11,38,468/ -. THE REASONED FINDING GIVEN BY THE CIT(A) DOES NOT CALL FOR INTER FERENCE FROM OUR SIDE. WE ACCORDINGLY UPHOLD THE SAME. THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY DISMISSED. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22-01-2016. SD/- SD/- ( VIKAS AWASTHY ) ( R.K. PANDA ) JUDICIAL MEMBER ACCOUNTANT MEMBER PUNE ; DATED : 22 ND JANUARY, 2016. ) *#,! -! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. THE CIT(A ) - I T/TP , PUNE 4. 5. 6. THE CIT-IT/TP, PUNE $ ''(, (, / DR, ITAT, B PUNE; - / GUARD FILE. / BY ORDER , // TRUE COPY // // $ ' //TRUE C // /0 ' ( / SR. PRIVATE SECRETARY (, / ITAT, PUNE