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TMI Blog2016 (2) TMI 409X X X X Extracts X X X X X X X X Extracts X X X X ..... fee income at Rs. 13,53,275/-. The Assessing Officer after issuing notice and hearing the assessee, made addition of Rs. 7,71,000/- to the coffee income and estimated Rs. 5,60,000/- towards pepper income, though pepper income was not declared by the assessee in the returns. Aggrieved by the same, the assessee preferred an appeal before the First Appellate Authority interalia raising other grounds pertaining to the relevant assessment year. The Appellate Authority allowed the appeal in part however, confirmed the addition made by the Assessing Officer to the coffee income of Rs. 7,71,000/- and the estimation of Rs. 5,50,000/- towards pepper income. Being aggrieved, the assessee preferred an appeal before the Karnataka Appellate Tribunal, Ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may give the estimation towards the expenditure incurred by the assessee. 5. Further, it is contended that the Pepper Vines were not ready for yielding during the relevant Assessment year. The Assessing Officer determining the yield of Pepper Vines after visiting the estate on 19.11.2008 i.e., subsequent to the assessment year, prima facie, establishes that the Assessing Officer proceeded on an assumption that during the relevant assessment year 2,000 Pepper Vines were ready for yield without considering the exact age of the Pepper Vines. 6. Further, it is also contended that the yield of coffee and Pepper depends on the season and climatic condition and no straight jacket formula is available to estimate the yield. The best judgment ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e previous three seasons, assessed the income adding Rs. 7,71,000/- to the coffee income, which cannot be found fault with. 8. It is further contended that the assessee had not declared any income towards the minor plantation crops particularly, from Pepper. On the visit of the Assessing Officer to the estate of the assessee on 19.11.2008 assisted by Mrs.E.Prabhu - Managing Partner, he noticed 2000 yielding Pepper Vines. After taking necessary instructions from the Managing Partner regarding the yield, and the expenses, has given allowance to the extent of 20% of the Pepper Vines as being affected by yellow disease and estimated the income from Pepper Vines at Rs. 5,60,000/-. This estimation is made by the Assessing Officer only after asce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers and documents are produced to cross verify the payment particulars. Accordingly, the income declared could not be cross verified with the expenditure incurred. Rejecting EB-2 register, income of coffee was assessed at Rs. 47,70,525/- as against Rs. 32,79,536/- declared by the assessee. This best judgment assessment made by the Assessing Officer is confirmed by the First Appellate Authority and the Tribunal after extensively considering the arguments of the assessee in the light of the Judgments relied on by the assessee. 10. As regards the estimate of income from Pepper, it has come to the notice of the Assessing Officer only during his visit to the estate of the appellant on 19.11.2008. Though subsequent to the crop year, presence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee. The assessee has admitted that he has not furnished any accounts other than EB-2 register. EB-2 register is not the relevant account required to be maintained as per the Rules. Even the contents of the EB-2 register maintained by the assessee would fulfill the requirement of Sub-clause (IV) of Rule 9-A, that itself would not be suffice to accept the claim of the assessee regarding the yield of coffee unless the corresponding expenditure towards the labour and other expenses are shown in the account books to substantiate the yield declared. Decision rendered on the factual matrix by the fact finding authorities cannot be disturbed at this stage. Accordingly, we do not see any merit in the arguments advanced by the learned cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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