9911796707
TMI Blog2012 (8) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... uch properties are not in the name of the assessee ?" 2. In the appeal filed by the assessee, the following substantial questions of law have been raised for consideration : "1. Whether in the Income-tax Appellate Tribunal was justified in holding that the assessment under section 158BA is not confined to income disclosed by materials gathered during the search under section 132 and the Income-tax Officer was entitled to make further investigation and collect materials for making further additions to the income determined based on the materials gathered during the search ? 2. Whether in view of the finding of the Tribunal that the appellant and his family members were in receipt of substantial agricultural income, the Tribunal was justified in law in holding that Rs. 49,90,000, Rs. 4,68,335, Rs. 68,000 and Rs. 26,070 represented undisclosed income taxable under the Income-tax Act, 1961 ?" 3. The brief facts leading to the present appeals are as follows : The appeals relate to the block assessment years 1986-87 and 1996-97 up to July 17, 1996. A search under section 132 of the Income-tax Act, 1961 (in short "the Act"), was conducted on July 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 32,75,252 (ix) Deposit in the name of G. Malliga 12,47,380 (x) Deposit in the name of Siranjeevi 29,392 Total of "C " 2,90,16,433 (D) Immovable properties in the name of other persons (i) House property at Kodaikanal 8,17,280 (ii) Estimated cost of additions 13,83,757 (iii) House at Kumaran Nagar, Trichy 24,34,800 (iv) Land at Manigandam 8,75,150 (v) Land at Vadagam, Kodaikanal 13,21,470 (vi) Plots at Anna Nagar, Trichy 7,21,200 (viii) Property in the name of Poongundran 90,000 (ix) Flat at 9/3 Nehru Nagar, Adayar 6,59,900 Total of "D " 92,08,957 (E) Property in the name of assessee Property at Kuzhamani 11,94,000 Total of "E" 11,94,000 (F) Income from bus operation 60,58,154 Total of "F" 60,58,154 (G) Miscellaneous income (i) Investment in Sudar Creations 2,00,000 (ii) Education expenses of children 2,18,264 (iii) Election expenses 4,15,000 (iv) Estimated family expenses 12,60,000 (v) Donation to AIADMK Party 10,00,000 (vi) Payment to Jaya Publication 20,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by way of agricultural income to the extent of Rs. 1,93,760 is not called for. 43.The Assessing Officer is, therefore, directed to give only one deduction under section 80L amounting to Rs. 53,694. 44. As a result of these adjustments, the net revised undisclosed income will be Rs. 64,98,721 (Rs. 65,52,405 (-) Rs. 53,684). 45. The Assessing Officer is directed to modify the block assessment on the above lines. In the result, the block assessment appeal is partly allowed. Order accordingly." The above order is put in issue by the Revenue in T. C. (A) No. 686 of 2005 and by the assessee in T. C. (A) No. 2 of 2009. 5. We have heard elaborately Mr. K. Ramasamy, learned senior standing counsel appearing for the Revenue in both the appeals and Mr. R. Venkataraman, learned senior counsel, for Mr. R. Sivakumar and Mr. A. Sathyaseelan, learned counsel, both appearing for the assessee in the respective appeals. 6. It is the contention of the Revenue that in terms of rule 29 of the Income-tax (Appellate Tribunal) Rules, the Tribunal ought not to have entertained the additional evidence as only in the event the Tribunal requires additional evidence to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l before the Commissioner of Income-tax (Appeals) at the relevant point of time. In these circumstances, the provision relating to the Commissioner of Income-tax (Appeals), viz., rule 46A of the Income-tax Rules, 1962 (for brevity" the IT Rules") cannot be pressed into service. Rule 29 of the Income-tax (Appellate Tribunal) Rules, 1963, (for brevity "the ITAT Rules"), of course, contemplates a provision that if the Tribunal requires any document to be produced or any witness to be examined or any affidavit to be filed to enable it to pass orders or for any other substantial cause, or, if the income-tax authorities have decided the case without giving sufficient opportunity to the assessee to adduce evidence either on points specified by them or not specified by them, the Tribunal, for reasons to be recorded, may allow such document to be produced or witness to be examined or affidavit to be filed or may allow such evidence to be adduced. 10. Though a reading of the said rule shows that it is a power conferred only on the Tribunal, the rule had been interpreted by the courts to confer a right on the assessee as well to produce additional evidence. 11. In this context ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee. 13. In view of the above, the first submission of the learned senior standing counsel appearing for the Revenue cannot be accepted and the same is rejected. Point No. 2 14. As far as the second contention is concerned, the details of the documents are referable. These documents are the copies of adungal records, certificates issued by the Village Administrative Officers, lease deed copies and the affidavits of 13 persons stating that they are the holders of agricultural lands and they had sufficient income to commensurate the agri- cultural income which was available for their disposal. It is also pertinent to note that the above 13 persons filed their respective returns disclosing the same properties and also explaining the source of income and the Revenue also made assessments of the individual returns on protective basis. 15. We have perused those documents, which were filed before us in a separate typed set from page 20 onwards. For example, we may refer the English translation of the certificate issued by the Village Administrative Officer dated May 10, 1996, stating that the assessee owns 0.49.5, 0.35.5, 0.46.5 and 0.06.0 hectares of lan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase the agricultural lands in various survey numbers to the assessee by name K. P. Krishnan and is cultivating plantain, paddy, toor dhall, cotton, gingelly, etc., for the period from 1980 and 1991. The questions as to whether the lands in these survey numbers belong to the assessee or not and whether the assessee had entered into lease agreement with the said Manickam or not are all matters to be considered in detail to find out the genuineness of those documents. All additional evidence/ documents are more or less on the same lines. In this regard, we have gone through the order of the Tribunal and the Tribunal had accepted almost all the documents without there being any detailed consideration. Rule 29 mandates the Tribunal to satisfy itself as to whether those documents can be entertained, and if entertained, shall apply its mind to the veracity of those documents. This being a power vested in the Tribunal with certain element of discretion attached to it, such power shall be exercised with great care and caution and not arbitrarily. Merely because the opposite party did not seriously object to those documents, the obligation of the Tri- bunal under rule 29 cannot be ignored. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,59,900 6,59,900 27 Investment in the name of others on the agricultural land in Wuraiyur 90,000 90,000 28 Investment in the name of Janshi Rani in Bus No. 45E 7000 and the operational income 10,72,480 10,72,480 29 Investment in the name of A. G. Ayyavoo in Bus No. TN 45 X 3565 and the operational income 8,66,308 8,66,308 30 Investment in the name of P. Thangiah in Bus No. TN 45 E 1582 and the operational income 7,73,887 7,63,887 31 Investment in the name of Chandrahassan in Bus No. TN 45 D 0525 and the operational income 10,38,809 10,38,809 (1) (2) (3) (4) 32 Investment in the name of Chandrahassan in Bus No. TN 45 C 7857 and the operational income 17,22,842 17,22,842 33 Investment in the name of others in Sudar Creation 2,00,000 2,00,000 34 Expenditure on children's education by the assessee 2,13,264 2,13,264 35 Election expenses, donation to party and payment to Jaya Publication 14,35,000 14,35,000 36 Expenditure on family maintenance 12,60,000 12,60,000 37 Salary income Net income after deduction Net income after deduction 38 Income from house property 6,79,800 6,79,800 39 Deduction towards agricultural income 1,93,760 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
