JANAKIRAMAN MUTHULAKSHMI,CHENNAI V. DCIT, CORPORATE CIRCLE-1(1), CHENNAI

ITA 2399/CHNY/2024

AI Insights

The case involves an appeal by Janakiraman Muthulakshmi against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Center, Delhi, which confirmed an estimated addition of Rs. 7,28,830 to the assessee's agricultural income for the assessment year 2017-18. The addition was initially made by the Assessing Officer (AO) under sections 147 and 143(3) of the Income Tax Act, based on a directive from a previous tribunal decision which required 25% of agricultural income to be considered as income from other sources. The assessee contested this addition, arguing that the agricultural income for the year was significantly lower than in previous years, thus making the application of the same ratio excessive.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46353 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Other Referred Cases: ITA No.641/Mds/2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KEERTHI NARAYANAN
• Assessee Lawyers: P.M. KATHIR
• Keywords: Set aside
• Section: 147; 143(3)

Judgement Text

"आयकर अपीलीय अधिकरण, ‘बी’न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिर्क सदस्य एवं श्री अयिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2399/Chny/2024 निर्ाारण वर्ा /Assessment Years: 2017-18 Janakiraman Muthulakshmi, No.38, Kaveri Street, Rajaji Nagar, Villivakkam, Chennai-600 049. [PAN: AGOPM0835D] Deputy Commissioner of Income Tax, Corporate Circle-1, Chennai (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri P.M.Kathir, Advocate प्रत्यर्थी की ओर से /Revenue by : Shri Keerthi Narayanan, JCIT सुिवाई की तारीख/Date of Hearing : 26.12.2024 घोर्णा की तारीख /Date of Pronouncement : 12.02.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed against the order bearing DIN & Order No.ITBA/NFAC/S/250/2024-25/1067490710(1) dated 09.08.2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2017- 18. Through the aforesaid appeal the assesse has challenged order u/s 250 dated 09.08.2024 passed by NFAC, Delhi. ITA No.2399/Chny/2024 2.0 The Ld. Counsel for the assessee informed that the only issue in the case is regarding an estimated addition of Rs.7,28, 830/- made by the Ld. AO in respect of agricultural income u/s 147 / 143(3) of the act. The Ld. CIT(A) confirmed the addition made by the Ld.AO. The Ld. Counsel submitted that the Ld. AO has made the addition keeping into consideration its case history of earlier years whereby Hon’ble Coordinate Bench of this tribunal had directed the Ld. AO in assessee’s own case vide ITA No.641/Mds/2017 dated 08.11.2017 to consider 25% of agricultural income as other sources. The Ld. Counsel submitted that as compared to earlier years the agricultural income during the year under consideration is very small and hence the addition @ of 25% is excessive. A request was made to delete the same. The Ld. DR argued that ITAT has already decided the threshold limit of disallowance to be made @ 25% and that there is therefore no infirmity in the order of the Ld AO. 3.0 We have heard rival submissions in the light of material available on records. We have noted that in the past, Hon’ble Coordinate Bench of this tribunal had directed the Ld. AO to consider 25% of agricultural income as other sources. The action of lower authorities therefore can not be wholly found to be incorrect. We however also find force in the ITA No.2399/Chny/2024 argument of the assessee that given the shortfall in the quantum of agricultural income the same ratio cannot be applied. Be that as it may be we are of the view that the interest of justice would be met, considering fall in total agricultural income, if we restrict the disallowance to 12.5%. Accordingly, the order of the lower authorities is set aside and the Ld.AO is directed to recalculate the addition by adopting the figure of 12.5%. Accordingly, all the grounds of appeal raised by the assessee is partly allowed. 9.0. In the result, the appeal of the assesse is partly allowed. Order pronounced on 12th , February-2025 at Chennai. Sd/- ( एबी टी. वकी) (ABY T VARKEY) न्यानयक सदस्य / Judicial Member Sd/- (अयिताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, नदिांक/Dated: 12th , February-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT – Chennai. 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "