9911796707
TMI Blog2014 (2) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... earned A.O. and confirmed by learned CIT(A). 2. On identical facts, the return of income filed by appellant upto 2008-09 have been accepted as income shown by appellant and there is no any adverse comments by learned A.O. as well as CIT(A). WITHOUT PREJUDICE: 3. On the facts and circumstances of the case the appellant is holding 10 to 12 Bighas of ancestral agricultural land in village Ode and doing agricultural activities personally of Bananas and also supporting his fellow brother farmers, f relatives and receiving service charges 1% which is connected with the agricultural activities of the appellant and also other factors the additions made in the hands of the appellant and confirmed by learned CIT(A) deserves to be deleted. 4. That ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under appeal. The assessee did not disclose this bank account and the transactions through this account in its income tax return. The assessee was asked to prove the source of the entire cash deposits in this bank account. In response to this, assessee vide his submission dated 27-06-2011 stated that during the year under appeal he has purchased banana and sold the same to Panjab and Hariyana through transporters. The assessee also submitted a statement of purchase and sales of banana and other expenses as under:- Purchases Rs. 38,58,501/- Sales Rs. 40,33,500/- Transportation Expenses Rs. 27,500/- Bank Charges Rs. 6905/- Commission @ 1% Rs. 40,594/- Total Rs. 40,33,500/- Rs. 40,33,500/- Assessee also fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sri Raojibhai Shankarbhia Patel iv). Sri Sanabhai Parshottambhai Patel v). Sri Rameshbhai Ambalal Patel In response to these summons Sri Raojibhai Shankarbhia Patel, Sri Sanabhai Parshottambhai Patel and Sri Rameshbhai Ambalal Patel attended the office and their statements were recorded. All these three farmers stated in their statements that during the year under appeal they have supplied banana to the assessee and he was not issuing any bill/vouchers. The assessee did not furnish the details of traders and transporters nor any confirmation of the trader or any bill/vouchers for any further verification. Since the assessee failed to comply with the information/details, the assessee was asked to show cause as to why the commission @ 1% o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t land owners relatives and our HUF has earned agricultural income of Rs.2,70,498/- and commission income of Rs.40,000/-our HUF has not taxable income and therefore no return of income was not filed by our HUF. In support of proof of my agricultural income copy of 7/12 forms are enclosed herewith. Regarding sales proceeds of other relatives, I am enclosing herewith account of amount deposited in the bank account in Punjab National Bank, Anand wherein the amount is transferred form OM Banana Agency & Others, Amritsar ad other traders out of total amount deposited in Bank I have paid an amount of Rs.39,58,501/- to the 5 parties whose banana have sold through me on commission basis. I have not purchased or sold any goods of my relatives nearb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also noticed that the entire transaction through PNB was made in the assessee's name only. Therefore AO was of the view that assessee was doing the banana business in the individual capacity only and therefore income earned out of banana business was taxable in the assessee's own individual case. Since the assessee did not furnish the details of traders, transporters, bills and vouchers and details of cash deposits made in the aforesaid bank account, the mere commission offered for taxation @ 1% out of banana business was not justifiable and therefore AO estimated a profit @ 10% as reasonable profit on this business. The profit so worked out was Rs. 4,03,350/- and was added to the total income of the assessee. 4. In appeal the Ld. CIT(A) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t all these transactions were done by the assessee on behalf of HUF and in support of these certain documents were also filed. But on verification of the same, AO found that bananas were never grown by the assessee during the year under appeal on the lands owned by the HUF. AO also found that neither the HUF nor any member of HUF obtained PAN No. and were not assessed to tax. Therefore he held that this plea was taken as afterthought which according to us appears to be a reasonable conclusion under the facts and circumstances of this case. Ld. CIT(A) has also agreed with the finding of AO that cash deposit in the undisclosed bank account was out of trading of bananas. He however reduced the estimation of profit from 10% taken by the AO to 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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