TMI Blog2009 (6) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... e of coffee estates in Wayanad, over and above the registered sale deed, were on money . The question is whether the said on money is still taxable in the present case. The property sold by the assessee was agricultural property situated beyond 8 k.m. of any Municipality. HELD THAT:- The property was not notified either. In such circumstances, any surplus of money arising to an assessee on sale of agricultural land always partakes the character of agricultural income itself. The consideration stated in the registered sale deed is very much agricultural income. Likewise, the on money also should be treated as agricultural income even though that surplus consideration is tainted with the expression on money . The genesis of the on money is definitely the sale of agricultural land. The hon'ble Supreme Court in the case of CIT v. All India Tea and Trading Co. Ltd.[ 1996 (3) TMI 4 - SUPREME COURT] has held that compensation received on requisition of agricultural land amounted to agricultural income. The Supreme Court again in the case of Singhai Rakesh Kumar [ 2000 (11) TMI 2 - SUPREME COURT] has held that income arising out of the transfer of such agricultural land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ANAN., N. VIJAYAKUMARAN. ORDER DR. O.K. NARAYANAN (Accountant Member).- I.T.A. Nos. 955 and 1981/Coch/2005 are cross-appeals filed by the Revenue and the assessee. They relate to the assessment year 1999-2000. The appeals are directed against the order of the Commissioner of Income-tax (Appeals)-III, Trivandrum dated March 24, 2005, and they arise out of the assessment completed under section 143(3) read with section 147 of the Income-tax Act, 1961. 2. I.T.A. Nos. 683 and 717/Coch/2006 are cross-appeals by the assessee, Smt. Annamma Koshy alias Latha Koshy and the Revenue. These appeals are directed against the order of the Commissioner of Income-tax (Appeals)-III at Trivandrum dated September 18, 2006. These appeals relate to the assessment year 1999-2000 and arise out of the assessment completed under section 143(3) read with section 147 of the Income-tax Act, 1961. 3. I.T.A. No. 361/Coch/2007 is filed by the assessee, Smt. Annamma Koshy alias Latha Koshy. The appeal relates to the assessment year 2000-01. The appeal is directed against the order of the Commissioner of Income-tax (Appeals)-III at Trivandrum, dated January 24, 2007, and arises out of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Rs. 1,00,000; Income from profession Rs. 95,000; Agricultural income Rs. 1,45,000; and Advance for sale of agricultural land Rs. 8,50,000. 10. Though the assessee explained that the cash credits in his bank account amounting to Rs. 8,50,000 (as mentioned in page 6 of the assessment order), the Assessing Officer did not accept the same. The Assessing Officer was of the view that in the conveyance deed, the value has been stated at Rs. 2.65 lakhs and as such the remaining amount was on money and added the same to the total income ignoring the explanation of the assessee that in the sale agreement, the sale price was mentioned at Rs. 15 lakhs and the entire payments were routed through banking channels. 11. Similarly, the Assessing Officer noticed that there was a deposit of Rs. 5 lakhs, each in the name of the assessee and his wife. The assessee explained that these are the sale proceeds of the coffee estate of himself and his wife. The Assessing Officer did not accept the same and made additions. 12. Aggrieved, the assessee carried the matter in appeal before the Commissioner of Income-tax (Appeals). According to the Commissioner of Income-tax (Appeals), at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcept to register the conveyance deed for an understated value, as most of the amounts were utilised in the construction. The Commissioner of Income-tax (Appeals) has considered the issues in a detailed manner and found that the entire transaction was through banking channels. The assessee had furnished a copy of agreement to sell the impugned coffee estate. It is a common feature that in the State of Kerala, the Government itself has fixed the minimum value to be considered for registration, in each area, and if the value is understated by that amount, the purchaser/seller has to pay compounding fee to the Revenue authorities. In the instant case, it is the contention of the assessee that the actual consideration is as per the agreement and he has received the said amount by cheques/demand drafts and paid compounding fee for understated consideration. Therefore, the Commissioner of Income-tax (Appeals) has accepted the contentions raised by the assessee and deleted the additions made by the Assessing Officer. We do not find any error on this finding. Accordingly, we uphold the order of the Commissioner of Income-tax (Appeals) with regard to the additions made by the Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rding adequate opportunity of hearing to the assessee. 19. In result, the Revenue's appeal is dismissed and the assessee's appeal is allowed for statistical purposes. 20. In I.T.A. No. 717/Coch/2006 for the assessment year 1999-2000, the only grievance of the Revenue is in respect of deletion of addition of Rs. 6.10 lakhs under on money receipt on transfer of estate. 21. The facts and circumstances of the case are similar to I.T.A. No. 955/Coch/2005 in the case of Dr. Koshy George, husband of the assessee. In the instant case also, the assessee had owned five acres of coffee estate at Wayanad, which was purchased in 1991 for a consideration of Rs. 2 lakhs and sold by a conveyance deed for Rs. 2.65 lakhs, in 1999 but in the agreement to sell, the parties had agreed for a consideration of Rs. 15 lakhs and the same was paid by way of cheques/demand drafts. In the case of Dr. Koshy George, we have already upheld the findings of the Commissioner of Income-tax (Appeals). The facts and circumstances of the case are being similar, we uphold the findings of the Commissioner of Income-tax (Appeals) and dismiss the Revenue's appeal. 22. In I.T.A. No. 683/Coch/2006 fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... include the same in the total income and issue notice of concealment. From the facts as narrated above and the assessee has failed to explain satisfactorily either before the Commissioner of Income-tax (Appeals) or even before the Tribunal with regard to the source of Rs. 45,000, we uphold the findings of the Commissioner of Income-tax (Appeals) on this issue. We do not express any view on the question of concealment . 25. In result, the assessee's appeal is partly allowed for statistical purposes. 26. In I.T.A. No. 361/Coch/2007 for the assessment year 2000-01, the effective ground, raised by the assessee is as under: The learned Commissioner of Income-tax (Appeals) erred in law in holding that the credit of Rs. 1,25,000 on June 24, 1999, cannot be accepted as proceeds of the cheque No. 405546 dated June 10, 1999, drawn on Wayanad District Co-op. Bank Ltd., issued by Mr. Chathan from his S.B. Account. with Wayanad Co-operative bank, Kalpetta, in the absence of any confirmation from the party. 27. We heard rival submissions. The assessee has sold her five acres of coffee estate at Wayanad vide conveyance deed dated May 11, 1999. The explanation of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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