TMI Blog2010 (10) TMI 1046X X X X Extracts X X X X X X X X Extracts X X X X ..... w. 4. The brief facts relating to the issue are that during the year, the assessee had claimed loss of ₹ 1,17,070/- from his proprietorship business M/s Milk Time Frozen Foods. The assessee failed to produce any books of account and any bills or vouchers before the Assessing Officer and in the absence of the same, the loss shown by the assessee was disallowed. In appeal, before the CIT (A), the plea of the assessee was that no reasonable opportunity was provided to the assessee regarding production of books of account. The CIT (A) had sought a remand report from the Assessing Officer for which the matter was referred back to the Assessing Officer. The CIT(A) notes that the assessee failed to produce any details before the Assessing Officer and even before the CIT(A), no reasonable explanation was given except to say that the books of account could be produced. Accordingly, the order of Assessing Officer was upheld by the CIT (A). 5. The learned AR for the assessee drew our attention to the balance sheet filed at pages 5 along with Trading, Profit and loss account at page 6 and details of stock at page 9 of the paper book and pointed out that the details were filed alo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d illegal. 8. The brief facts relating to the issue are that the during the year under consideration the assessee had shown agricultural income of ₹ 14,50,000/-. The Assessing Officer requisitioned the assessee to provide details of his agricultural land alongwith the documentary evidence regarding the agricultural income. The assessee vide reply dated 22.8.2008 filed the copy of deed of agricultural land situated at Andhra Pradesh. The said deed was not in English and learned AR for the assessee was asked to produce the English translation of the said deed. The assessee failed to furnish the English translation of the said deed nor any details of sale of agricultural products and / or related expenditure incurred to earn the said income were furnished, despite several opportunities being allowed by the Assessing Officer. The Assessing Officer thus treated the sum of ₹ 14,50,000/- as unexplained income of the assessee. Before the CIT(A), the first grievance of the assessee was that no reasonable opportunity was allowed by the Assessing Officer before making the aforesaid additions. The CIT(A) on perusal of the assessment order issued letter dated 13.1.2009 to the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... even if the income from plant nursery is agricultural income, then also the assessee had to file sufficient evidence that 10 acres of land was having the capacity to produce such income by way of plantation of nursery. The CIT(A) estimated the annual return at the rate of 20% of the investment made by the assessee in purchasing the agricultural land and found it reasonable to estimate the agricultural income of ₹ 20,000/- per year. The balance addition of ₹ 14,30,000/- was confirmed by CIT(A). The assessee is in appeal against the said order of the CIT(A). 9. The learned AR for the assessee pointed out that the total land holding of the assessee was 23.45 acres of land. Our attention was drawn to the compilation of land holding at page 43 of the paper book and the deeds of purchase of land at pages 44 to 65 of the paper book. The learned AR further pointed out that the said land was with the assessee from 1988 and declaration in respect of the investment in the said land was made under the VDIS scheme. The copy of the declaration under VDIS scheme and acknowledgment of filing the return under the VDIS scheme are placed at pages 66 and 67 of the paper book. The learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce 1988. During the course of assessment proceedings, the assessee was requisitioned to file the evidence of his agricultural land holdings. Though the assessee filed the copies of the purchase deeds in Telugu, but the English version of the same were not furnished before the Assessing Officer during the assessment proceedings or even during the remand proceedings. The assessee before us had furnished the land holdings of the assessee at page 43 of the paper book along with the purchase deed in Telgu at pages 44 to 65 of the paper book. The assessee has also furnished the alleged transalation of the first page of sale deed filed at pages 45 to 64 of the paper book but only top portion has been so translated. The said English Version was admittedly not furnished during the course of proceedings before the lower authorities. Further, the assessee had declared certain assets under the VDIS scheme which he claims to be the value of the alleged agricultural land. However, the perusal of details at pages 66 67 of the Paper book reveals the names of different assets which are in the names of different persons, but not the assessee and even the complete particulars of land are missing. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - as income of the appellant without appreciating correct facts, circumstances and also the provisions of law and as such the order of learned CIT(A) is perverse and bad in law. 12. The assessee during the year has shown lease rent on vehicles given to M/s Milk Specialties Ltd. As per the agreement of lease of vehicles, the said vehicles were taken on lease at ₹ 1,500/- per month in the case of heavy commercial vehicle and for ₹ 1,000 /- per month in the case of light commercial vehicles. Further, as per the terms of the agreement the entire expenses on running of vehicles during the hire period were to be borne by the said company. In addition, the company was to pay the margin money and installment to the financer during the period of finance against the finance of vehicles.. The Assessing Officer asked the assessee to provide details regarding the treatment of expenses in the accounts of the company. In reply, dated 22.8.2008, the assessee stated that the company was assessable at Circle 4(1) and all the information was available in the concerned jurisdiction. In second reply dated 24.10.2008, the assessee stated that margin money and vehicle finance charges wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her claims that the lease rentals on the said vehicle have been declared by the assessee in its return of income on similar facts the income shown in Assessment Year 2004-05 has been accepted by the Assessing Officer. It was further pointed out by the learned AR that as per the terms of the agreement, installments due for the finance raised were paid by the company. The learned DR for the Revenue placing reliance on the order of the authorities below pointed out that the company had booked the said as an expenditure and consequently the same was assessed as income of the assessee. 14. We have heard the rival contentions and perused the records. The assessee is the Managing Director of M/s Milk Specialties Ltd and has entered into an agreement for the lease of vehicles both light vehicles and heavy vehicles and motor cars. The list of vehicles claims to be leased by the assessee to the company is placed at page 30 of the paper book. The copy of the agreement between the assessee and the said company is placed at page 4 of the book. As per the terms of the agreement, the company would hire the commercial vehicle owned by the assessee for its use. The entire expenses on running of ..... 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