Shri N.Sivasanmuggam, CHENNAI V. DCIT, Coimbatore

ITA 788/CHNY/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4824 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 14-06-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 21-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SRINIVAS; DR I VIJAYAKUMAR
• Assessee Lawyers: K S B ALAKRISHNAN
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH C, CHENNAI B E F O R E DR. O.K.NARAYANAN, VICE PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER .. I.T.A. NOS.776 TO 780(MDS)/2010 ASSESSMENT YEARS:2001-02, 2003-04, 2005-06, 2006-07 & 2007-08 SMT. N.CHANDRA, THE DEPUTY COMMISSIONER 64, VYSIAL STREET, VS. OF INCOME-TAX, COIMBATORE-641 001. CENTRAL CIRCLE III, PAN ABWPN99229K. COI MBATORE. (APPELLANT) (RESPONDENT) I.T.A. NOS.781 TO 785(MDS)/2010 ASSESSMENT YEARS: 2001-02, 2003-04, 2005-06, 2006 -07 & 2007-08 SHRI N.ANANDA SRINIVASAN, THE DEPUTY COMMISSIONER 64, VYSIAL STREET, VS. OF INCOME-TAX, COIMBATORE-641 001. CENTRAL CIRCLE III, PAN ADJPA1819R. COIMBATORE. (APPELLANT) (RESPONDENT) I.T.A. NOS.786 TO 790(MDS )/2010 ASSESSMENT YEARS: 2001-02, 2003-04, 2005-06, 2006-0 7 & 2007-08 SHRI N.SIVASANMUGGAM, T HE DEPUTY COMMISSIONER 64, VYSIAL STREET, VS. OF INCOME-TAX, COIMBATORE-641 001. CENTRAL CIRCLE III, PAN AMZPS3571R. C OIMBATORE. (APPELLANT) (RESPONDENT) ITA NOS.776 T O 780 OF 2010, ETC. 2 AND I.T.A. NOS.868 TO 870(MDS)/2 010 ASSESSMENT YEARS: 2003-04, 2004-05 AND 2007 -08 THE DEPUTY COMMISSIONER SHRI N.SIVASANMUGGAM, OF INCOME-TAX, VS. 64, VYSIAL STREET, CENTRAL CIRCLE III, COIMBATORE-641 001. COIMBATORE. PAN AMZPS3571R. (APPELLANT) (RESPONDENT) ASSESSEES BY : SHRI K.S.B ALAKRISHNAN DEPARTMENT BY : DR.I.VIJAY AKUMAR & SHRI B.SRINIVAS O R D E R PER BENCH:- THIS IS A BUNCH OF EIGHTEEN APPEALS. ITA NOS.776 TO 780(MDS)/2010 ARE FILED BY THE ASSESSEE SMT. N.CHAN DRA, COIMBATORE FOR THE ASSESSMENT YEARS 2001-02, 2003-0 4, 2005-06, 2006-07 AND 2007-08; ITA NOS.781 TO 785(MDS)/2010 A RE FILED BY THE ASSESSEE SHRI N.ANANDA SRINIVASAN, COIMBATORE FOR T HE ASSESSMENT YEARS 2001-02, 2003-04, 2005-06, 2006-07 AND 2007-0 8; ITA NOS.786 TO 790(MDS)/2010 ARE FILED BY THE ASSESSEE SHRI N.SIVASANMUGGAM, COIMBATORE FOR THE ASSESSMENT YEAR S 2001-02, 2003-04, 2005-06, 2006-07 AND 2007-08; AND ITA NOS. 868 TO 870(MDS)/2010 ARE FILED BY THE REVENUE FOR THE ASSE SSMENT YEARS 2003-04, 2004-05 AND 2007-08 IN THE CASE OF THE ASS ESSEE SHRI ITA NOS.776 T O 780 OF 2010, ETC. 3 N.SIVASANMUGGAM. AS THE ISSUES INVOLVED ARE IMMENSE LY COMMON, THESE APPEALS ARE HEARD AND DISPOSED OF TOGETHER. 2. THE MAIN GRIEVANCE IN THE APPEALS FILED BY THE ASSESSEE IS AGAINST THE QUANTUM OF AGRICULTURAL INCOME ALLOW ED BY THE LOWER AUTHORITIES IN THEIR RESPECTIVE HANDS. THE ASSESSE ES HAVE DECLARED AGRICULTURAL INCOME RANGING FROM ` 6,31,540/- TO ` 11,74,826/- FOR THE ASSESSMENT YEARS UNDER APPEAL. IT IS THE CASE OF T HE DEPARTMENT THAT THEY HAVE CARRIED OUT EXTENSIVE ENQUIRIES REGARDING THE AGRICULTURAL INCOME STATED TO BE DERIVED BY THE ASSESSEES. IT I S THE CASE OF THE REVENUE THAT THERE IS NO EVIDENCE ON RECORD TO PROV E THE OWNERSHIP OF EXTENSIVE PARCELS OF LAND AS CLAIMED BY THE ASSE SSEES AND MAJOR PORTION OF THE LAND IS STATED TO BE AVAILED ON LEAS E. WHEN ENQUIRIES WERE MADE WITH THE LESSORS THEY DENIED HAVING LEASE D OUT AGRICULTURAL LANDS TO THE ASSESSEES. SO ALSO THE A SSESSEES COULD NOT PRODUCE ANY DOCUMENTARY EVIDENCE TO SUPPORT THEIR C LAIM OF DERIVING AGRICULTURAL INCOME. 3. AT THE TIME OF HEARING, IT IS THE CASE OF THE A SSESSEES THAT THE ENQUIRIES STATED TO BE CONDUCTED BY THE DEPARTM ENT WERE ONE- SIDED WHERE THE MATERIALS VERIFIED BY THEM AND THE PERSONS WHOM ITA NOS.776 T O 780 OF 2010, ETC. 4 THEY EXAMINED WERE NOT MADE AVAILABLE TO THE ASSESS EES BEFORE COMPLETING THE IMPUGNED ASSESSMENTS. 4. IT IS THE CASE OF THE ASSESSEES THAT THEY ARE H AVING TITLE DEEDS WITH THEM TO ESTABLISH THE OWNERSHIP OF LAND AND THE OTHER LEASE AGREEMENTS TO SHOW THE POSSESSION OF LANDS TA KEN ON LEASE. IT IS THE CASE OF THE ASSESSEES THAT THEY ARE HAVING T HE DETAILS OF CASH CROPS CULTIVATED BY THEM AND OTHER REASONABLE EVIDE NCES TO PROVE THEIR CASE. THEREFORE IT IS THE CASE OF THE ASSESS EES THAT THEY ARE DESTINED TO SUFFER INSPITE OF ALL THE RELEVANT DETA ILS AND MATERIALS AVAILABLE IN THEIR HANDS AS THEY HAD NO OPPORTUNITY TO CONVINCE THE AUTHORITIES THAT THE AGRICULTURAL INCOMES ACCOUNTED IN THEIR HANDS WERE BONA FIDE AND GENUINE. 5. ON GOING THROUGH THE ASSESSMENTS, IN THESE CASE S, WE ARE OF THE VIEW THAT THE ISSUE OF AGRICULTURAL INCO ME IS PARAMOUNT IN ALL THESE CASES. THIS IS BECAUSE THE MAIN SOURCE O F FUNDS AVAILABLE IN THE HANDS OF THE ASSESSEES AND UTILIZED BY THEM FROM TIME TO TIME IS FROM THE AGRICULTURAL INCOME STATED TO BE EARNED BY THEM. IF THEIR CASE OF AGRICULTURAL INCOME IS FOUND TO BE REASONAB LE, THE ASSESSEES WOULD BE HAVING SUFFICIENT AMOUNTS OF FUNDS WITH TH EM SO AS TO EXPLAIN OTHER INVESTMENTS AND OUTGOINGS. IF THE CA SE OF AGRICULTURAL ITA NOS.776 T O 780 OF 2010, ETC. 5 INCOME IS NOT PROVED IN THEIR HANDS, THE CASE OF TH E REVENUE WOULD BE STRONG AS FAR AS ADDITIONS MADE IN RESPECT OF OT HER INVESTMENTS AND OUTGOINGS ARE CONCERNED. THEREFORE IT IS VERY P ERTINENT TO STATE HERE THAT THE AVAILABILITY OF FUNDS IN THE HANDS OF THE ASSESSEES BY WAY OF AGRICULTURAL INCOME IS THE MOST IMPORTANT TH ING TO BE DECIDED. THE FATE OF OTHER ADDITIONS IS MAINLY DEPENDENT ON THE OUTCOME OF THE ABOVE EXAMINATION. 6. IN THE FACTS AND CIRCUMSTANCES OF THE C ASE WE ARE OF THE CONSIDERED VIEW THAT THE ISSUE OF AGRICULTURAL INCO ME IS TO BE EXAMINED BY THE ASSESSING AUTHORITY WITH A FRESH MI ND, IN ACCORDANCE WITH LAW. VIOLATION OF THE PRINCIPLES OF NATURAL J USTICE ALWAYS DEFEATS ANY STATUTORY PROCEEDINGS, HOWSOEVER LOGICAL MIGHT BE THE CONCLUSIONS ARRIVED AT BY THE STATUTORY AUTHORITIES . OBSERVANCE OF THOSE BASIC PRINCIPLES IS VERY IMPORTANT IN ALL MAT TERS RELATING TO QUASI JUDICIAL PROCEEDINGS. WHEN THE ASSESSEES ARE HAVIN G VERY SERIOUS GRIEVANCES OF LACK OF OPPORTUNITIES TO ESTABLISH TH EIR CASES OF AGRICULTURAL INCOME AND WHEN THEY HAVE MADE OUT A C ASE OF REASONABLE EVIDENCES IT WOULD NOT BE PROPER ON OUR PART TO BRUSH ASIDE THEIR CONTENTIONS AND PROCEED FURTHER TO ADJU DICATE THE MATTER ON TECHNICALITIES. ITA NOS.776 T O 780 OF 2010, ETC. 6 7. THEREFORE, IN THE FACTS AND CIRCUMSTANCES OF TH ESE CASES WE REMIT BACK ALL THESE CASES TO THE ASSESSING AUTH ORITY WITH A DIRECTION TO EXAMINE THE MATTERS RELATING TO THE AG RICULTURAL INCOME AVAILABLE IN THE HANDS OF THE ASSESSEES AND ALSO TH E MATTERS RELATING TO THE AVAILABILITY OF FUNDS IN RESPECT OF THE OTHE R INVESTMENTS AND OUTGOINGS. THE ASSESSING AUTHORITY IS DIRECTED TO PROVIDE AN EFFECTIVE OPPORTUNITY OF BEING HEARD TO ALL THE ASSESSEES AND THE ASSESSEES ARE ALSO DIRECTED TO CO-OPERATE WITH THE ASSESSING AUTHORITY WITHOUT ANY HIDE AND SEEK GAME. THE REMAND ASSESSMENTS MUS T BE COMPLETED AS SOON AS POSSIBLE. 8. AS THE ISSUES RELATING TO ALL THESE APPEALS HAV E BEEN REMANDED BACK TO THE ASSESSING AUTHORITY, THE GROUN DS RAISED BY THE REVENUE DO NOT BECOME MATURE NOW. THOSE ISSUES RAI SED IN THE GROUNDS OF THE REVENUE ALSO WILL BE CONSIDERED BY T HE ASSESSING AUTHORITY. 9. IN RESULT THE APPEALS FILED BY THE ASSESSEES AS WELL AS THE APPEALS FILED BY THE REVENUE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ITA NOS.776 T O 780 OF 2010, ETC. 7 ORDER PRONOUNCED ON MONDAY, THE 20 TH DAY OF JUNE, 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 20 TH JUNE, 2011. V.A.P. COPY TO: (1) APPELLANTS (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.