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2016 (9) TMI 1662 - ITAT CHENNAINature of income - Agricultural income treated as income from other sources - HELD THAT:- Nothing to establish that the assessee does not have agriculture income for the relevant assessment year. The strong belief of Revenue authorities is that during the relevant assessment year the assessee could not have earned any agricultural income which appears to be quite illogical. Since the facts pertaining to the relevant assessment year 2000-01 is more than 15 years old it would be difficult to make any estimate of agricultural income for the relevant assessment year at this relevant point of time - No option but to allow the claim of the assessee. Hence, we hereby direct the AO to delete the addition made under the head ‘income from other source’ and accept the same as “agricultural income” of the assessee. Decided in favour of the assessee. Accrued interest income from bank deposits - As per AO even though the fixed deposits were frozen, interest was accruing to the assessee on those deposits and therefore, it will be liable to be taxed - HELD THAT:- There is a great element of uncertainty for realizing the interest as well as the bank deposits by the assessee. Even if she realizes the same, it would be after a period of number of years and probably at that time re-assessment may not be possible due to limitation and thus the assessee would not be able to claim refund of the tax paid if the deposits are forfeited. As interest income of the assessee can be recognized only when there is no uncertainty and a significant scope to receive the same. Therefore, accrued interest on the bank deposit frozen by the DVAC, wing of the Govt. of Tamilnadu cannot be treated as interest income of the assessee during the relevant assessment year - direct AO to delete the interest income while computing the total taxable income of the assessee. Revision u/s 263 - wealth tax assessment - Commissioner invoked his powers u/s 25 of the Wealth Tax Act by stating that the wealth tax assessment is found to be erroneous insofar as it is prejudicial to the interests of the Revenue - HELD THAT:- What can be the subject matter of reassessment can be done only by reopening of the assessment and not by revision u/s.263. This is because there is no assessment regarding the item considered in the DVAC report. When there is no assessment itself, the question of revision u/s.263 does not arise on this issue. In the present case if there is escapement of assessment on this issue and it should have been brought to assessment by virtue of sec.147 and 148 of the Act and not under section 263 of the I.T. Act and the revisionary power u/s.263 cannot be exercised for escapement of income. See Bidar Sahakar Sakkare Karkhane Ltd. Vs. State of Karnataka [1984 (7) TMI 341 - KARNATAKA HIGH COURT] Addition for cost of construction - This has already been a subject matter of appeal before the CIT(A) for earlier assessment year and he has already adjudicated the issue and hence there is no question of further considering this issue - Now this is also supported by our order wherein we have confirmed the order of the ClT(A). On this ground also addition is unwarranted towards cost of construction. Addition towards jewellery vehicles and other assets and footwear and silk sarees - Additions cannot be made entirely in the hands of the assessee since there premises where these were found were shared by three and other persons and it is not possible to say to whom these assets exactly belong. Since there is no categorical evidence to believe that this could be treated as belonging only to this assessee and it is too early to come to the conclusion that these belong to the assessee and fasten the liability of payment of tax. The charge sheet alone can not be treated as conclusive evidence to make additions. Thus we annul the order of the CIT passed u/s. 263 and appeal of the assessee is accordingly allowed.
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