TMI Blog2008 (12) TMI 434X X X X Extracts X X X X X X X X Extracts X X X X ..... deserves to be deleted." 3. Learned counsel for assessee submitted that the assessee filed return of income declaring business income of Rs. 60,000, remuneration received from M/s. Cue Club a partnership firm, capital gains loss of Rs. 3,36,022 and income from other sources of Rs. 18,854, the total income returned was Rs. 78,854. While completing the assessment, the Assessing Officer made addition of Rs. 18,38,133 under section 68 of the Income-tax Act, 1961 ("the Act" for short). This represents amount received from one A.S. Patil, residing at No. 61, Ground Floor, BTS Road, near 11th Cross, Wilson Garden, Bangalore. The Assessing Officer sought to examine A.S. Patil to verify the bona fides of the claim and sought the assessee s help to produce him. For this purpose, the Assessing Officer issued summons in the name of A.S. Patil for appearance without indicating any fixed date. A.S. Patil was not traceable for one reason or the other. It was also not possible for the assessee to talk to A.S. Patil over phone/mobile. This matter was brought to the notice of the Assessing Officer. Thereupon, the Assessing Officer contacted him over the phone from his office in the presence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing them to cultivate his 3 acres, 27 Guntas of land. The amount was stated to have been received from the said concern at the rate of Rs. 5,000 per day almost on all 365 days of the year and in respect of the same quantity of agricultural produce which was sold at the same price all through the year. This claim has been examined in detail and since the explanation was not satisfactory, the same is brought to tax under section 68 of the Act. The only evidence produced in support of the claim of agricultural income was "statement of account of aspragras". This statement of account was issued on the letter head of M/s. Crazy Flora. Apart from this statement, the assessee does not have any proof regarding the claim of agricultural income. The assessee was examined by the Assessing Officer during the assessment proceedings. The learned Departmental Representative relied on the answer to question No. 20 which reads as under : " Q. 20 : Have you maintained any books for recording of agricultural income ? If so, give a copy of the same along with cash book. A. 20 : Regarding agricultural income, I have not maintained accounts. However whatever agriculture income is received is acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oing through the paper book we find another document issued by Sri Annapurneshwari Tube-wells dated 23-2-1999 in the name of the assessee disclosing the terms and conditions for laying a tube-well. At p. 33 of the paper book we find groundwater survey report issued by Sri Manjunatha Geo Services. From the above details, it is crystal clear that the assessee had land holdings and had commenced agricultural operations. The assessee had applied for power. Further, the assessee had even laid tube-wells in his land for the supply of water for irrigation. For not producing Shri A.S. Patil, the assessee had explained that at present he is unable to trace him and, in fact, asked for sometime, but before the completion he could not produce him. The explanation given by the assessee appears to be correct by looking into further facts that the said Patil had appeared before the Assessing Officer during the assessment proceedings and he was extensively cross-examined by the Assessing Officer after administering the oath. Thus, the existence of the said Patil has clearly come to light. Further, from seeing the figures filed during the proceedings before this Tribunal, it is obvious that the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessing authority on 4-1-2007 stating as under : "I, Mr. A.S. Patil, S/o S.A. Patil, now residing at Ground Floor, No. 61, BTS Road, Wilson Garden, Bangalore-560 027, solemnly affirm that this date of 4-1-2007 and state as under : (1)It is true I had transactions of the value of about Rs. 18,38,000 during the financial year 2003-04 with S.V. Hariprasad S/o S.M. Rangaiah, residing at No. 1390, 39th Main, 9th E Cross, JP Nagar, 1st Phase, Bangalore-560 078, I know he is assessed to income-tax. (2)During the course of assessment proceedings connected with transaction with him, he requested me to appear before his Assessing Officer, Ward 19(1), Bangalore. For some reason or the other I could not keep up with the commitment. (3)Due to my ill-health, I could not meet him. Later on, I learnt from S.V. Hariprasad that the Assessing Officer issued detailed letter to him in connection with his assessment proceedings and along with a summons addressed to me was also enclosed with blank date to enable S.V. Hariprasad to locate me and make me to appear before the Assessing Officer. (4)Due to unavoidable circumstances I could not be located by Mr. S.V. Hariprasad and that was how I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and notary. In the aforesaid affidavit, A.S. Patil had explained why he could not be present during the assessment proceedings. Further, it is pertinent to note that after this affidavit, the Assessing Officer had issued notice under section 131 of the Act and accordingly, he appeared before him on 11-4-2007. The explanation given by A.S. Patil in the statement recorded was not assailed by the revenue. The Assessing Officer asked several questions, to which A.S. Patil clarified, the way in which the grass was grown, the yield and the income therefrom. In fact, right from beginning the assessee has been claiming to have received a sum of Rs. 18,38,000 from A.S. Patil during the previous year from sale of grass grown by A.S. Patil on the lands of the assessee, this has been sufficiently corroborated by the statement of A.S. Patil. The statement recorded from A.S. Patil further clarifies as to how they could earn more money from the produce and sale of grass over and above the amounts estimated by the Government authorities. The statement of account of aspragras issued by M/s. Crazy Flora owned by A.S. Patil is thoroughly corroborated on all aspects. Thus, the assessee had establish ..... X X X X Extracts X X X X X X X X Extracts X X X X
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