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2015 (5) TMI 358 - ITAT DELHI

2015 (5) TMI 358 - ITAT DELHI - TMI - Agricultural income - CIT(A) deleted the addition - Held that:- From the documentary evidence filed by the assessee before the ld. First Appellate Authority i.e. cash statement, the assessee has not established that assessee has deposited the cash on account of sale proceeds of agricultural crops. The assessee has also not established that he has received ₹ 7 lacs on account of sale of poplar trees from Atim Khan and Hamid Khan and ₹ 4,02,000/- o .....

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ing in view of the facts and circumstances of the present case and the order passed by the revenue authorities as well as the evidences produced by the assessee before the ld. First Appellate Authority in the shape of paper book, we are of the view that ld. First Appellate Authority has deleted the addition merely on the basis of surmises and presumptions which is not permissible under the law. In our considered view, the impugned order is not sustainable in the eyes of law, therefore, we cancel .....

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and in law the Ld. CIT (Appeals) has erred in :- Deleing the addition of ₹ 23,57,000/- made by A.O. in deleting the addition the CIT (A) has failed to appreciate the fact that on a small land holding of 1.262 hectare of land agricultural produce to the tune of ₹ 25 lacs cannot be grown. The appellant craves the right to alter, amend, add or substitute the grounds of appeal. 2. The facts relating to the issue in dispute are that the assessee filed his return of income on 25.08.2008 d .....

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sued notice u/s 143(2) of the Act on 03.09.2009 fixing the case of the assessee for 14.09.2009. In response to the same, the assessee s authorized representative appeared. The Assessing Officer again issued notice u/s 143(2) and 142(1) of the Act along with a questionnaire on 01.09.2010 fixing the case of the assessee for 10.09.2010. In response to the same, authorized representative of the assessee appeared and filed necessary details which were examined by the Assessing Officer. The main sourc .....

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from sale proceeds of agricultural produce. The assessee has also filed the details of sale proceeds of ₹ 7 lacs from poplar trees from one Attim Khan and Hamid Khan, sons of Sabir Khan, resident of Bilaspur, Distt. Rampur. The details of ₹ 4,02,000/- were also submitted before the Assessing Officer being received on account of giving his Amrud Bagh on lease to Jamil Khan, s/o Sher Khan, Ruderpur, Uttrakhand and as regards to ₹ 70,000/-, the assessee has not submitted any expl .....

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appeal before the ld. First Appellate Authority who by impugned order dated 13.05.2011 deleted the addition in dispute by allowing the appeal filed by the assessee. 3. Now, the revenue being aggrieved by the impugned order dated 13.05.2011 has filed the present appeal before us. 4. At the time of hearing, ld. DR relied upon the order passed by the Assessing Officer. On the contrary, ld. AR relied on the order of the ld. First Appellate Authority. He drew our attention to the paper book filed by .....

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eeds of poplar trees, ₹ 7,00,000/- to Sh. Attim Khan & Hamid Khan and ₹ 11,85,000.00 to Sh. Murtja Khan, confirmation letter dated 16.12.2010 issued by Tehsildar, alongwith cropwise detail issued by patwari for Ranbir Collective Co-Op. Farming Society Ltd filed before Assessing Officer, Kisan Bahi i.e. evidence of land ownership filed before Assessing Officer regarding land owned by assessee in individual capacity (1.262 Hectare) and land owned by Ranbir Collective Co-Op Farming .....

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led by the assessee before the revenue authorities, the impugned order passed by ld. First Appellate Authority may be upheld by dismissing the appeal filed by the revenue. 5. We have heard both the parties and gone through the orders passed by the revenue authorities as well as the documentary evidences in the shape of paper book containing pages 1 to 75. It is very much necessary to reproduce the relevant portion of the assessment order and for the sake of convenience, the same is reproduced as .....

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submitted that this deposit is from sale proceeds of agricultural produce. The details of this sale proceeds were filed i.e. a sum of ₹ 7 lacs on account of sale proceeds of poplar trees from one Sh Attim Khan and Hamid khan sons of Sabir Khan, resident of Bilaspur, Distt. Rempur and ₹ 4,02,000/- on account of giving his "AMRUD BAGH" on lease to Sh Jamil Khan S/o Sher Khan, Ruderpur, Uttrakhand and about balance amount of ₹ 70,000/-, no explanation has been furnished. .....

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ion has not been furnished by these two persons. He was further show caused that the deposits in cash of ₹ 23,57,000/- alleged to have been from sale of agriculture produce shall be treated as income from undisclosed sources and added to the total Income of the assessee vide order sheet entry dated 24.12.2010. The A R of the assessee did not furnish any reply to this query. Further, I am satisfied that the assessee has furnished inaccurate particulars of his income, hence penalty proceedin .....

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4,00,000/- which was accepted by the Assessing Officer. As regards to the balance amount of ₹ 23,57,000/- which the assessee has deposited in cash in his aforesaid bank account, no doubt the assessee has produced some documentary evidence before the Assessing Officer as well as before the ld. First Appellate Authority but assessee could not substantiate his version before the Assessing Officer. Secondly, the assessee has stated that a sum of ₹ 7 lacs was received on account of sale p .....

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& Hamid Khan at the given addresses. The letter sent to Shri Murtza Khan has been received back unserved with the remarks of postal authorities no such person at the given address . Atim Khan and Hamid Khan did not furnish the required information sought for by the Assessing Officer. The Assessing Officer has given another opportunity to assessee by issuing a show-cause notice regarding source of cash deposit of ₹ 23,57,000/- alleged to have been received from sale of agricultural prod .....

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he law and facts on the file. For the sake of convenience, it is very much relevant to reproduce the relevant portion of the impugned order passed by the ld. First Appellate Authority which is at paras 3 & 4 at pages 2 to 7 and the same is reproduced as under :- 3. The appellant was a gallantry award winner from Airforce. He retired from Airforce in the year 1985 and settled in a place in Bilaspur near Ruderpur of Nainital District of Uttrakhand. His pension income from military is exempt u/ .....

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#8377; 30 lakhs per year. This certificate translation is produced as under:- "Sh.Malvinder Singh Grewal s/o Sh.Mehra Singh Grewal is a permanent resident and agriculturist of Gram Kota Ali Nagar, Tehsil Bilaspur, Distt.Rampur. He is a secretary in Ranvir Co-operative Farming Society Ltd. He is the authorized person for doing all the agricultural activities on the land and having income of ₹ 30,00,000/-. An oath letter is enclosed. Submitted. The appellant had given explanation about .....

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000.00 Sale Proceeds 04-Jun-07 Cash 100,000.00 Sale Proceeds 26-Jul-07 Cash 200,000.00 Sale Proceeds 30-Jul-07 Cash 100,000.00 Sale Proceeds 08-Aug-07 Cash 100,000.00 Sale Proceeds 26-0ct-07 Cash 165,000.00 Sale Proceeds 02-Nov-07 Cash 120,000.00 Sale Proceeds 28-Nov-07 Cash 100,000.00 Sale Proceeds 01-Dec-07 Cash 300,000.00 Sale Proceeds 07-Dec-07 Cash 250,000.00 Sale Proceeds 17-Dec-07 Cash 225,000.00 Sale Proceeds 13-Feb-08 Cash 39,000.00 Sale Proceeds 04-Mar-08 Cash 38,000.00 Sale Proceeds 1 .....

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m Bank (for agricultural expenses) Date Mode Amount Narration 01-Jun-07 Self Cheque 48,804.00 Diesel Payment 19-Jun-07 Self Cheque 100,000.00 Withdrawal for Agricultural Exp. 20-Jun-07 Self Cheque 100,000.00 Expenses towards Farming Agricultural 21-Jun-07 Self Cheque 100,000.00 Expenses towards Farming Agricultural 04-Jul-07 Self Cheque 10,000.00 Expenses towards Farming Agricultural 12-Jul-07 Self Cheque 100,000.00 Expenses towards Farming Agricultural 12-Jul-07 Self Cheque 100,000.00 Expenses .....

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Cheque 100,000.00 Withdrawal for Agricultural Exp 29-Jan-08 Self Cheque 20,175.00 Withdrawal for Agricultural Exp 10,61,962.60 Payment from Bank (for agricultural expenses) Date Mode Amount Narration 30-Mar-07 Cheque 46,860.00 Payment for fertilizer 29-Aug-07 Cheque 20,000.00, Purchase of seeds 20-Nov-07 Cheque 42,718.00 Payment for seeds 20-Feb-07 Cheque 7,158.00 Agricultural Exp. 27-Mar-08 Cheque 28,753.20 Agricultural Exp. 1,45,490.00 Agricultural Income : Cash deposited in Bank (As per Point .....

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the name of Ranbir Collective Co-operative Farming Society 41,264 Land in the name of Mini Collective Co-operative Farming Society 12.6 Total land 55.126 1) Mr. Malvinder Singh Grwal is the secretary in Ranbir Collective Cooperative Farming Society Ltd. He is the authorized person for doing all the agricultural activities on the land. 2) Further also, Mr.Grewal is also authorized person for doing all agricultural activities on the land related to Mini Collective Co-operative Society. Enclosed d .....

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the previous year related to assessment year 2008-09. The assessee had returned agricultural income of ₹ 25 lakhs in his returned of income which is on the excessive side. Since the assessee had a source of cash receipts of ₹ 30 lakhs from agricultural as receipts certified by the local Tehsildar, cash deposit of ₹ 23,57,0001- in the bank account of the assessee stands explained. However, the income computation made by the assessee will be changed to the extent of total income .....

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ess income. In future the appellant is advised to keep an accountant to maintain his books of account from all sources of income so that he shall be able to produce audited books of accounts before AO and the department in future. Since the assessee is managing co-operative society for cooperative farming, he should maintain books of accounts audited for such purposes. Whenever, the professional receipts exceeds Rs.I0 lakhs, he should maintain books of accounts under section 44AA of the I.T.Act. .....

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ted the addition in dispute which we have reproduced in the foregoing paragraph. After going through the explanation of the assessee along with the additional evidence filed by the assessee and the finding of the ld. First Appellate Authority, we are of the considered view that assessee has filed additional evidence under Rule 46A of the Income-tax Rules, 1962 and the Assessing Officer on 14.03.2011 has also given remand report in the case of assessee and strongly objected the admission of addit .....

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ched in the paper book at pages 53 to 55 of the paper book and rebuttal by the assessee to the remand report of the Assessing Officer dated 20.04.2011 which is at pages 56 to657 of the paper book. Meaning thereby, the ld. First Appellate Authority has not applied his mind while deleting the addition in dispute and the addition was dismissed merely on the basis of surmises and conjectures without any evidence. Therefore, the impugned order is not sustainable in the eye of law. 5.1 We further find .....

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tares. In the nutshell, the assessee is owner of only 1.262 hectares. As regards to the sale proceeds of ₹ 7 lacs from poplar trees from one Attim Khan and Hamid Khan, sons of Sabir Khan, resident of Bilaspur, Distt. Rampur and ₹ 4,02,000/- on account of giving his Amrud Bagh on lease to Jamil Khan, s/o Sher Khan, Ruderpur, Uttrakhand, the assessee has submitted some details but the same were not substantiated with corroborating evidences. But the ld. First Appellate Authority has de .....

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g agricultural income and agricultural expenses made during the year under consideration. The assessee has also submitted his cash flow statement before the ld. First Appellate Authority which establishes that assessee has deposited cash frequently in his bank account alleging that these cash he has received on account of sale proceeds and crop sale proceeds. The assessee has also pleaded before the revenue authorities that he has incurred some expenses towards farming agriculture but he has not .....

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