Rati Ram, Faridabad V. ITO, Faridabad

ITA 914/DEL/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3969 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 19-04-2011
• Assessment Year: 1996-1997
• Appeal Filed On: 17-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y KAKKAR
• Assessee Lawyers: J P GULATI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: F NEW DELHI BEFORE SHRI R.P.TOLANI, JM AND SHRI B.C.MEENA, AM ITA NO. 914/DEL/2011 A.Y. 1996-97 SHRI RATI RAM, VILLAGE PALLI VS. ITO, WA RD II (4), FARIDABAD TEHSIL & DT. FARIDABAD C/O D.CHORDIYA H.NO. 826/15 A FARIDABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI J.P.GULATI, ADV. RESPONDENT BY : MS. Y.KAKKAR, SR.D.R. O R D E R PER B.C.MEENA, ACCOUNTANT MEMBER THE ASSESSEE HAS FILED THIS APPEAL AGAINST THE OR DER PASSED BY THE CIT (A), FARIDABAD DATED 22.11.2010 PERTAININ G TO A.Y. 1996-97. THE GROUNDS OF APPEAL READ AS UNDER. 1. THE LD.CIT(A) HAS ERRED ON FACTS AND IN LAW IN UPHOLDING AN ADDITION OF RS. 1,60,000/- BY IGNORING DOCUMENTA RY EVIDENCE THAT THE ASSESSEE IS AN AGRICULTURIST AND OWNED ABOUT 10 ACRES OF FERTILE LANDS WHICH YIELDED TWO C ROPS, SIMPLY ON THE PLEA THAT NO EVIDENCE FOR EXPENDITURE INCURRED FOR GROWING CROPS, SALE OF AGRICULTURAL PRODUCE ETC . WERE FURNISHED AND ALSO IGNORING THE EVIDENCE THAT THE A SSESSEE HAD PURCHASED LANDS FROM SAVINGS OF AGRICULTURAL INCOME FOR ITA NO.914/DEL/2011 PAGE 2 OF 5 A.Y. 1996-97 SH. RATI RAM, FARIDABAD RS. 2,35,000/- IN THE YEAR 1990 ON THE EXCUSE THAT PRECEDENTS CANNOT PARTAKE CHARACTER OF EVIDENCE. 2. THE LD.CIT(A) WAS NOT JUSTIFIED IN CONFIRMING AN ADDITION OF RS. 12,000/- AS INCOME FROM PROPERTY DEALINGS, BY E XCLUSIVELY RELYING ON THE ASSESEES STATEMENT BEFORE THE DDIT (INV.) AND DCIT, CIRCLE 21(1) ON 28.12.2004, IGNORING THE FACT IT COULD NOT BE MADE APPLICABLE TO FINANCIAL YEAR 1995-96 RELEVA NT TO A.Y. 1996-97. RELIEF CLAIMED: IT IS PRAYED THAT ADDITION CONFIRME D AT RS. 1,60,000/- AND RS. 12,000/- MAY KINDLY BE CANCELLED . 2. GROUND NO.2 OF THE APPEAL HAS NOT BEEN PRESSED B Y THE LD.A.R. FOR THE ASSESSEE. THEREFORE ONLY GROUND NO.1 IS BEING ADJUDICATED. IN THIS GROUND THE ISSUE REGARDING ADDITION OF RS. 1,60,00 0/- HAS BEEN RAISED BY THE ASSESSEE. THE LD.A.R. FOR THE ASSESSEE SUB MITTED THAT THE ASSESSEE IS AN AGRICULTURIST HAVING 10 ACRES OF AG RICULTURE LAND AT WHICH TWO CROPS ARE BEING GROWN. ASSESSEE IS ON I LLITERATE AGRICULTURIST. TWO CROPS ARE BEING SOWN ON THE LAND WHICH IS EVID ENT BY GOVERNMENT RECORD. THE LAND IS IRRIGATED AND FERTILE. BEING AGRICULTURIST WHERE IT IS DIFFICULT TO MAINTAIN THE RECORDS OF EACH AND EVERY TRANSACTION UNLIKE OTHER PERSONS ENGAGED IN BUSINESS. SUFFICIENT LAND HOLDING BY ASSESSEE AND EVIDENCE FOR GROWING CROPS IN GOVERNMENT RECORD S SHOULD BE CONSIDERED SUFFICIENT EVIDENCE TO ARRIVE AT A REASO NABLE EARNING FROM AGRICULTURE. THEREFORE, THE LD.CIT(A) WAS NOT JU STIFIED IN SUSTAINING THE ITA NO.914/DEL/2011 PAGE 3 OF 5 A.Y. 1996-97 SH. RATI RAM, FARIDABAD ADDITION. HE ALSO SUBMITTED THAT COPIES OF JAMABA NDI RECORDS FOR : THE LAND AT VILLAGE GAZIPUR , VILLAGE PALLI ETC. WERE SUBMITTED. HE FURTHER SUBMITTED THAT KHASRA GIRDHARI FOR THE LANDS FOR SO WING TWO CROPS LIKE Z. PADDY, WHEAT, MOONG ETC. WERE ALSO FILED. HE ALSO S UBMITTED THAT THESE DOCUMENTS WERE FORWARDED BY THE LD.CIT(A) TO TH E A.O. WHO HAS NOT RAISED ANY DOUBTS ON THE GENUINENESS OF THESE DOCU MENTS. IT IS ALSO PLEADED THAT THE ADDITION MADE ON SUBSTANTIAL BASI S IN THE HANDS OF SHRI GOURISHANKER WAS DELETED BY LD.CIT(A). THEREFORE THE CIT(A) SHOULD HAVE CONSIDERED ALL THESE EVIDENCES WHILE DECIDING THE APPEAL OF ASSESSEE. HE SHOULD HAVE APPRECIATED THE CORRECT FACTS IN THE RIGHT PERSPECTIVE. THE ASSESSEE IS ILLITERATE AGRICULTUR IST. HE IS HAVING SUFFICIENT FERTILE AND IRRIGATED LAND WHICH CAN REA SONABLY GENERATE INCOME OF RS. 1,60,000/- FOR THE YEAR AND RETURNS FROM THE SAME HAVE BEEN DEPOSITED IN THE BANK ACCOUNTS. THEREFORE THE DE TAILS LIKE MANDI RECEIPTS SHOULD NOT BE CONSIDERED ESSENTIAL FOR DEC IDING THE ASSESSEES APPEAL. ON THE OTHER HAND LD.D.R. RELIED ON THE O RDER OF AUTHORITIES BELOW. 3. AFTER HEARING BOTH THE SIDES WE FIND THAT THE ON LY ISSUE UNDER CONSIDERATION IS WHETHER THE ASSESSEE COULD GENERAT E THE INCOME UPTO RS. 1,60,000/- FROM THE AGRICULTURAL OPERATIONS WHI CH COULD EXPLAIN THE DEPOSITS IN THE BANK. ASSESSEE IS AN ILLITERATE AG RICULTURIST. THE ASSESSEE OWNS FERTILE IRRIGATED AGRICULTURAL LAND FOR WHI CH HE HAS SUBMITTED THE NECESSARY EVIDENCES. EVIDENCES WERE ALSO SUBMITTED THAT TWO CROPS ARE BEING GROWN ON HIS LAND. THE LD.CIT(A) DISMISSED T HE ASSESSEES CLAIM ITA NO.914/DEL/2011 PAGE 4 OF 5 A.Y. 1996-97 SH. RATI RAM, FARIDABAD THAT THE ASSESSEE HAS FAILED TO PROVE THE NEXUS BET WEEN THE AGRICULTURAL INCOME AND THE CASH DEPOSITS MADE IN THE BANK AND T HE CLAIM WAS DISMISSED FOR WANT OF MANDI RECEIPTS ETC. IN OUR CONSIDERED VIEW THE ASSESSEE HAS PRIMA FACIE ESTABLISHED THAT HE IS HOL DING AGRICULTURAL LAND WHICH IS FERTILE AND IRRIGATED. HE WAS GROWING TWO CROPS ON THIS LAND. SINCE ASSESSEE WAS AN ILLITERATE AGRICULTURIST, WE HOLD THAT THAT REJECTING ASSESSEES CLAIM OUTRIGHTLY ONLY FOR NOT PRODUCING MANDI RECEIPTS IS NOT JUSTIFIED. SINCE THE ASSESSEE IS AN ILLITERATE LIV ING IN VILLAGE IT IS DIFFICULT TO MAINTAIN SUCH MINUTE DETAILS. ONCE HE HAS SUBMI TTED THE BASIC DOCUMENTS TO PROVE THAT LAND OWNED BY HIM IS CAPAB LE TO PRODUCE THE AMOUNT HE DEPOSITED IN BANK AND HE WAS GROWING CROP S ON IT, THEN IT SHOULD BE ACCEPTED. THERE IS NO DENIAL THAT HE WAS HAVING AGRICULTURAL LAND WHICH IS FERTILE AND IRRIGATED, THEREFORE THE OUTRIGHT REJECTION OF ASSESSEES CLAIM IS UNJUSTIFIED. THE REVENUE HAS AL SO FAILED TO ESTABLISH THAT THE AGRICULTURAL INCOME GENERATED BY THE ASSES SEE HAS BEEN SPENT FOR ANY OTHER PURPOSE. THEREFORE, WE SET ASIDE THE ORDER OF AUTHORITIES BELOW AND ALLOW ASSESSEES APPEAL. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESS EE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH MAY, 2011. SD/- SD/- (R.P.TOLANI) (B.C.MEENA) JUDICIAL MEMBER ACCOUNTANT MEMB ER DATED: 13.5. 2011 *MANGA ITA NO.914/DEL/2011 PAGE 5 OF 5 A.Y. 1996-97 SH. RATI RAM, FARIDABAD COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT (A); 5.DR 6.GUARD FILE BY ORDER DY. REGISTRAR // TRUE COPY //