TMI Blog2016 (2) TMI 409X X X X Extracts X X X X X X X X Extracts X X X X ..... subsidiary registers 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 ₹ 47,70,525/- as against ₹ 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. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tained 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. - Decided against assessee - CRP No.189/2012 - - - Dated:- 25-1-2016 - NK PATIL S SUJATHA, JJ For the Petitioner : : Sri. S.P. Bhat, Adv. For the Respondent : Sri. T.K. Vedamurthy-HCGP JUDGEMENT PER: S SUJATHA: The matter arises under the provisions of the Karnataka Agricultural Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts and circumstances of the case, the Tribunal is justified in sustaining the addition of ₹ 7,71,090/- made on account of coffee income by the officer and an addition of ₹ 5,60,000/- made on account of pepper income? 4. Learned counsel Sri S.P.Bhat appearing for the appellant would contend that the assessee had maintained EB-2 register which is in conformity with Rule 9-A(IV) of the Karnataka Agricultural Income Tax Rules, 1957 ('Rules' for short) to maintain the yield account. The authorities below and the Tribunal out rightly rejected the EB-2 register without any valid basis. It is further contended that the reasonings of the Assessing Officer confirmed by the Appellate Authority and the Tribunal that no ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 disposed off on 04.01.2005) 7. On the other hand, Sri T K Veda Murthy, learned Government Pleader appearing for the revenue justifies the order passed by the Tribunal confirming the order of the authorities. He would contend that the assessee had declared the income from coffee at ₹ 23,55,000/-. At the time of the Assessing Officer verifying the yield of coffee, the assessee revised the return and declared the coffee income at ₹ 39,99,435/-. The conduct of the assessee indicates that the actual income from coffee was suppressed to evade the payment of tax and the same is declared only at the time of verification of yield by the Assessing Officer. The EB-2 register has no sanctity as it used to, when the Indian Coffee Act w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cord, it is clear that the assessee owns 84.12 acres of coffee in Belagodu area of Sakaleshpur Taluk, Hassan District. The assessee filed original returns on 31.7.2007 admitting the income from coffee for the assessment year 2007-08 at ₹ 23,55,000/-. However, after the Assessing Officer examined the books of accounts to verify the yield and other claim made by the assessee, a revised return was filed by the assessee declaring the coffee at ₹ 39,99,435/-. The average yield of the previous three seasons as noticed by the Assessing Officer works out to 46,565 kgs but appellant has declared only 32800/- kgs during the relevant assessment year. The Assessing Officer taking into consideration the climatic conditions and the season cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is adequate material to establish that the Pepper Vines were yielding during the relevant assessment year, which is not forth coming in the orders passed by the authorities. It is pertinent to note that the Assessing Officer was assisted by the Managing Partner of the assessees at the time of his visit to the estate and gathered information regarding the yielding Pepper Vines and it is only thereafter, determined that 20% of the Pepper Vines would be given allowance as being affected by yellow disease and arrived at ₹ 5,60,000/- estimating 5 kgs to each vine and valued the same at ₹ 70/- per kg i.e., 1600 Pepper Vines out of 2000. The said assessment in our opinion is reasonable, based on the information given by the Manag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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