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2015 (4) TMI 269 - GUJARAT HIGH COURTAdditions under Section 69 in the hands of the appellant - HUF on substantive basis? - ITAT confirming estimate of agricultural income made by the respondent and further confirming the quantum of agricultural income based on inaccurate method of calculating the same - Held that:- We find that the submissions made by the learned Counsel appearing for the Assessee(s) as well as the Revenue on the point of taxable liability, whether as that of the HUFs or of the Company are on nonexistent premise. Once the explanation is not found to be satisfactory and the finding is recorded, as per the provisions of Section 69 of the Act, it would be the deemed income of the HUFs - Assessee(s). Once it is treated as to be deemed income of the HUFs - Assessee(s), naturally the taxable liability would be upon HUFs - Assessee(s). So long as the said finding that the explanation is not sufficient and it can be termed as deemed income of HUFs remains, it is not necessary for us to further examine the aspect as to whether there was any income earned by the Company and as to whether there was diversion of money to the HUFs or not? If it is found on facts that the income was as that of the Company, such question may be required to be examined as to whose liability would be to pay tax. Under these circumstances, we find that the decision upon which reliance has been placed by the learned Counsel for the Assessee(s) on the point of taxable liability would be of no help to the appellant(s). The contention raised by the Assessee(s) on the quantification of the agricultural income of the HUFs as assessed by the A.O., and upheld by the Tribunal, in our view, could again be in the arena of appreciation and reappreciation of evidences on record. After considering the material on record, once the ultimate fact-finding Authority has arrived at the reasonable assessment of the income, we do not find that the same should be upset by undertaking the process of re-appreciation of the evidence. At the level of A.O., earlier assessment returns filed by the Assessee(s) for agricultural income of HUFs are considered, the mode adopted is of the average income and thereafter index is applied. Such cannot be said to be as unreasonable approach on the part of the Assessing Officer, nor can it be said that the finding recorded by the Tribunal was unreasonable or perverse to the record, which may call for interference in the present appeals wherein the judicial scrutiny is limited to only substantial question of law. - Decided in favour of the Revenue
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