Maulesh D. Ukani, RAJKOT-GUJARAT V. The Asstt. Commr. of Income Tax, Cir.-2(1), RAJKOT-GUJARAT

ITA 84/RJT/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1352 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 21-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT (CONDUCTED THROUGH E-COURT AT AHMEDABAD) BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND WASEEM AHMED, ACCOUNTANT MEMBER ./ ITANO.84/RJT/2017 / ASSTT. YEAR: 2012-2013 SHRI MAULESH DAHYABHAI UKANI, PUSHKAR PANCHVATI SOCIETY, B/H. BHAKTI NAGAR RAILWAY STATION RAJKOT. PAN: AAFPU5748N VS. A.C.I.T, CIRCLE-2(1), RAJKOT ( APPLICANT ) ( RESPONENT ) ASSESSEE BY : NONE REVENUEBY : SHRI PRAVEEN VERMA, SR. DR / DATE OF HEARING : 27/08/2018 / DATE OF PRONOUNCEMENT: 10/09/2018 *+/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAIN ST THE ORDER OF LD.CIT(A) DATED 08/12/2016, PASSED FOR THE ASSESSME NT YEAR 2012-13. 2. ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL S. 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN UPH OLDING THE ADDITION OF RS.6,52,448/- MADE BY THE AO BY REDUCING THE AGRICU LTURE INCOME OF RS.61,54,161/- TO RS.55,01,713/- BY WRONGLY APPLYIN G AND NOT CONFIRMING THE DECISION OF ITAT, RAJKOT MENTIONED IN THE ORDER . ITA NO.84/RJT/2017 ASSTT. YEAR 2012-13 2 2. HE HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION ON THE GROUND THAT ASSESSMENT IS ON AGREED BASIS IN AS MUCH AS TH AT THERE REMIND NO SUCH AGREEMENT AS THE CONDITION OF THE APPELLANT HAS NOT BEEN ACCEPTED BY THE AO. 3. HE HAS ERRED IN LAW AND ON FACTS IN NOT CONSIDERING FACTS THAT NO DISCREPANCY HAS BEEN FOUND IN THE BOOKS OF ACCOUNT MAINTAINED & PRODUCED BEFORE AO BY THE ASSESSEE FOR AGRICULTURE INCOME. 4. HE HAS ERRED IN LAW AND ON FACTS IN NOT CONSIDERING THE CONTENTION OF THE ASSESSEE BEFORE THE AO THAT NO ADDITION CAN BE MADE ON TECHNICALGROUND. 5. ON THE FACTS THE APPEAL OF THE ASSESSEE OUGHT NOT T O HAVE BEEN DISMISSED ON THE SO CALLED GROUND THAT ASSESSEE HAS AGREED FOR A DDITION WITHOUT PROPERLY APPRECIATING THE FACTS AND ATTEN DING CIRCUMSTANCES THERETO. 6. HE HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION CONSIDERED HAS CONCEALED INCOME FROM OTHER SOURCES IN AS MUCH AS T HAT THERE WAS NO CONCEALED INCOME. 7. ON THE FACTS THE RETURN INCOME OUGHT TO HAVE BEEN A CCEPTED IN TO WITHOUT ANY ADDITIONS. 8. THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER AND OR MODIFY ANY GROUND OF APPEAL. 3. IN RESPONSE TO THE NOTICE OF HEARING NO ONE HAS COME IN PRESENT ON BEHALF OF THE ASSESSEE.WITH THE ASSISTANCE OF LD.DR , WE HAVE GONE THROUGH THE RECORD CAREFULLY AND PROCEED TO DEICIDE THIS AP PEAL EX PARTY QUA ASSESSEE.IT EMERGES OUT FROM THE RECORD THAT ASSESSEE HAS FILED ITS RETURN OF INCOME DECLARING TOTAL INCOME OF RS.68,86,375/-. ON SCRUTI NY OF THE ACCOUNTS IT REVEALS THAT ASSESSEE OWNED AGRICULTURE LAND OF 11. 62 HECTARE. HE HAS SHOWN GROSS AGRICULTURE RECEIPTS OF RS.74,34,748/- AND AF TER TAKING EXPENSES OF RS.12,80,587/- HE HAS SHOWN NET AGRICULTURE INCOME AT RS.61,54,161/-.LD.AO OBSERVED THAT AGRICULTURE EXPENSES IN THE RATIO OF GROSS RECEIPTS IS 17.22 PERCENT WHICH IS ON LOWER SIDE. HE FURTHER OBSERVED THAT IN EARLIER YEARS SUCH AGRICULTURE EXPENSES WERE ESTIMATED AT 26% OF THE G ROSS AGRICULTURE RECEIPTS. THEREFORE, IN THIS YEAR ALSO HE TREATED THE GROSS A GRICULTURE EXPENSES AT 26% OF GROSS RECEIPT AND DISALLOWED FROM THE GROSS AGRICUL TURE INCOME. THIS ITA NO.84/RJT/2017 ASSTT. YEAR 2012-13 3 ENHANCEMENT OF EXPENDITURE WERE TREATED AS INCOME F ROM OTHER SOURCES AND AN ADDITION OF RS.6,52,448/- WAS MADE. 4. APPEAL TO THE CIT(A) DID NOT BRING ANY RELIEF TO THE ASSESSEE. 5. ON DUE CONSIDERATION OF THE ABOVE FACTS AND CIRC UMSTANCES WE ARE OF THE VIEW THAT LD.AO FAILED TO APPRECIATE THE WHOLE CONTROVERSY. ASSESSEE IS AN AGRICULTURIST, HE HAS DISCLOSED GROSS AGRICULTUR E RECEIPTS VIS--VIS NET AGRICULTURE RECEIPTS. THE LD.AOWITHOUT ASSIGNING AN Y REASONS OBSERVED THAT IN AN AGRICULTURAL ACTIVITY AN ASSESSEE SHOULD HAV E ESTIMATED 26% OF THE GROSS RECEIPTS TOWARDS AGRICULTURAL EXPENSES BECAUSE IN H IS UNDERSTANDING THIS MUCH EXPENDITURE WERE CONSIDERED IN EARLIER YEAR. TO OUR MIND HE TOTALLY FAILED TO APPRECIATE THE ACTIVITY ITSELF. THE EXPENDITURE IN AN AGRICULTURAL ACTIVITIES CANNOT BE CALCULATED ACCORDING TO THE MATHEMATICAL FORMULA. FOR EXAMPLE THE ASSESSEE HAS GROWN GROUNDNUTS IN A PARTICULAR YEAR, THERE WAS DEFICIT IN RAIN AND HE IRRIGATED HIS GROUNDNUTS WITH THE HELP OF TU BE WELL, THE EXPENDITURE ON ACCOUNT OF FUEL WOULD BE HIGHER. SIMILARLY, IN A PA RTICULAR YEAR THERE IS ATTACK OF INSECT AND ASSESSEE WAS REQUIRED TO SPRAY PESTIC IDES AGAIN EXPENDITURE WOULD BE ON HIGHER SIDE. IN OTHER WORDS OUTCOME OF AGRICULTURAL PRODUCE IS DEPENDENT UPON WEATHER CONDITION, NATURAL CALAMITIE S ETC. THE AO SHOULD ALSO DEMONSTRATE WHAT IS THE OTHER SOURCE OF INCOME TO A FARMER BEFORE PARTLY TREATINGHIS AGRICULTURE INCOME AS INCOME FROM OTHER SOURCE, IF A ASSESSEE IS ONLY AGRICULTURIST AND HE HAS NO OTHER SOURCE OF IN COME THEN WITHOUT REFERRING THOSE CIRCUMSTANCES WHICH COULD GIVE RISE TO EARNI NG OF INCOME FROM OTHER SOURCE, HOW, LD.AO TREATED SUCH AGRICULTURE INCOME AS INCOME FROM OTHER SOURCES. ALL THESE ASPECTS ARE MISSING IN THE ASSES SMENT ORDER. THEREFORE, WE ARE OF THE VIEW THAT ADDITION MADE TO THE TOTAL INC OME OF THE ASSESSEE ARE NOT ITA NO.84/RJT/2017 ASSTT. YEAR 2012-13 4 SUSTAINABLE, WE DIRECT THE AO TO TREAT THE AGRICULT URE INCOME OF THE ASSESSEE AT RS.61,54,161/- DISCLOSED BY THE ASSESSEE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE COURT ON 10 TH SEPTEMBER,2018 AT AHMEDABAD. -SD- -SD- (WASEEM AHMED) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER (TRUE COPY) AHMEDABAD; DATED 10/09/2018 MANISH *+ , -./0 1*0. / COPY OF THE ORDER FORWARDED TO : *+ 2 3 / BY ORDER, 4/3 56 ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! / CONCERNED CIT 4. ! ( ) / THE CIT(A) 5. $ %& '' , / DR, ITAT, 6. &)* + / GUARD FILE.