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2016 (5) TMI 853 - ITAT JAIPUR

2016 (5) TMI 853 - ITAT JAIPUR - TMI - Addition on account of agriculture income as income from other sources - Held that:- It is undisputed fact that ownership as well as agricultural activities done on own land and on leased land are not in dispute. Only the mater remained to be adjudicated that the agricultural income earned by the assessee. The ld CIT(A) has considered all the submissions made by the assessee, therefore, we confirm the part addition out of addition confirmed by the ld CIT(A) .....

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the credits in the bank account were out of deposits made with these parties. There are copies of the registered deeds, which cannot be doubted and payments were received by the assessee through banking channel. When the assessee transferring the immovable property through these agreements, there is no reason to doubt on the amount received by the assessee. Therefore, we reverse the order of the ld CIT(A). - Decided in favour of assessee. - ITA No. 379/JP/2014 - Dated:- 12-4-2016 - SHRI T.R.MEE .....

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the same may kindly be quashed. 2. ₹ 13,41,674/- : The Id. CIT(A) has grossly erred in law as well as on the facts of the case in sustaining the addition on account of agriculture income of ₹ 13,41,674/- as against of ₹ 33,75,000/- declared by the assessee and ₹ 11,49,995/- assessed by the AO by treating the rest agriculture income of ₹ 13,41,674/- as income from other sources. Hence the treatment so given by the AO and addition so made by the AO and partly confirm .....

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₹ 26,60,000/- of Sh. K.K. Jakhar, ₹ 5,00,000/- of Sh. Badri Ram Jakhar and ₹ 15,00,000/- of Sh. Jagdish Yadav). Hence the addition so made by the AO and confirmed by the CIT(A) is being totally contrary to the provisions of law and facts on the record and hence the same may kindly be deleted in full. 3.2 Further the Id. CIT(A) erred in conforming the addition, when the AO has not mentioned in the assessment order that under what provisions he had made additions. 4. Alternative .....

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law as well as on the facts of the case in charging af interest u/s 234A&B. The appellant totally denies it liability of charging of any such interest. Hence the interest so charged, being contrary to the provisions of law and facts, may kindly be deleted in full. 2. Ground No. 1 of the appeal is general in nature and there is no specific argument of the assessee, therefore, the same is not pressed by the AR. Accordingly, the same is dismissed. 3. Ground No. 2 of the appeal is against confi .....

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t agricultural income of ₹ 38,75,000/- in his return of income. Since the assessee had shown huge agriculture income and filed both the returns for A.Y. 2008-09 and 2009- 10 on same date. The ld Assessing Officer issued questionnaire letter dated 12/01/2011, apart from other details, the assessee was required to file copy of Khasra Girdawari and jamabandi in support of agriculture income and copy of sale bills of agriculture produce and details of expenses incurred thereupon. The assessee .....

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a number of ancestral land. Further he has not furnished complete details in support of agriculture cultivation and basis of agriculture income shown in the return of income. The assessee had also not produced copy of sale bills and bills and vouchers of expenses viz. seeds, pesticides, fertilizers, electricity bills, transportation bills, wages etc. incurred for cultivation on his own land. He simply said that agriculture produce were sold in open market, which was not found sufficient to the A .....

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It was claimed by the assessee that the agreement was executed on 28/06/2007 for agriculture activities at the farm of other party. However, on perusal of details it was observed that no any authentic documents were furnished about this agreement from which it could be verified that this agreement is authentic and genuine document. Further there was specific column in the khasra Girdawari for furnishing details of actual agriculturist who has cultivated crops on such land during the period under .....

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and specifically directed to furnish the details in support of his own land holding alongwith supporting evidence of agricultural produce and expenses incurred for the period under consideration. In response to this notice, no body attended. The ld Assessing Officer again issued notice U/s 131 of the Act to Shri Surendra Singh (Land Owner) to attend alongwith the identity proof and evidence of their land holding and supporting evidence of agriculture produced and expenses incurred for the perio .....

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to produce any other documents in support of agricultural income and banking account transaction. Thereafter one more opportunity was given by the Assessing Officer on 05/12/2011. The assessee has also not maintained books of account. Thereafter the ld Assessing Officer found that the assessee had declared excessive agricultural income to regularize huge unaccounted money earned by him from undisclosed source. It is undisputed fact that the assessee was having some ancestral agricultural in his .....

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Assessing Officer, the assessee carried the matter before the ld CIT(A), who had allowed the appeal by observing as under:- 4. I have considered submissions of the appellant and have also gone through the assessment order. It is seen that the appellant had shown income amounting to ₹ 38,75,000/- from agriculture. In support of the claim of agricultural income, the appellant had filed the necessary documents in the form Khasra Girdawari and relevant agreement. The AO, however, observed that .....

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proceedings, the statements of Shri Surendra Singh were recorded. The statement of his sister Smt. Nirmala could not be recorded as she was no more. In the statement before the AO Shri Surendra Singh has admitted to having given his and his sister s land admeasuring 57 acres to the appellant through lease deed executed on 28/06/2007. The AO also referred the matter to the territorial ITO u/s 131(l)(d). Since the appellant had failed to give details of expenses incurred on seeds, fertilizers etc. .....

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lation and has stated that the estimation made by the AO is not based on facts. It is argued that as per the Inspector s report itself the net income from guava comes to ₹ 27,20,000/-. It is contended that the fact that the appellant had earned income from sale of guavas as well as sale of wheat/paddy has been confirmed as per the report of Inspector/ITO, Fatehabad. It is also submitted that there is no mention of income from sale of green fodder raised on the agricultural land. Moreover, .....

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pute is about the estimation of agricultural income from the agricultural operations. It is noted from the AO s report that the appellant had indeed earned agricultural income from production of wheat, rice and guavas. The report of the AO is silent on the income earned from green fodder. According to the AO the agricultural income from these produce comes to ₹ 11,49,995/- only as against ₹ 33,75,000/- claimed by the appellant. The appellant has, admittedly, not kept any details/pape .....

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d support the extent of agricultural income earned by him. 4.4 The AO has estimated the income from wheat, paddy and guavas at ₹ 22,99,990/-. The income has been estimated on the basis of field enquiries done by the jurisdictional ITO, Fatehabad. There is no reason to dispute this estimation done by the AO with the help of ITO, Fatehabad. The calculation done by the appellant in respect of paddy and wheat is based on ideal conditions while the basis of the calculation of income from guava .....

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. 4.5 As far as the income from green fodder is concerned, it is seen that the appellant has shown highly excessive income from sale of fodder. The sale of fodder has been shown to be almost equal to the income from sale of wheat. Hence, considering the overall facts of the case, the income from fodder is estimated to be ₹ 5,00,000/-. In view of the above discussion, the total agricultural income of the appellant is estimated at ₹ 20,33,326/-. The rest of the income shall be treated .....

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itted after the inquiry and statement of persons recorded by him from whom land has been taken on lease and land holding by the assessee as well as land taken on lease and agriculture activity carried on by the assessee on these lands. In the remand report the Id. AO has only discussed and estimated the Agriculture income of the land taken on lease. However he has not given any comment on agriculture income arises from his own land of 41.85 Bhigas, which was estimated by him at ₹ 5,00,000/ .....

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ity, which is settled principle of law. Further, he relied various decisions of Hon ble ITAT Jodhpur Bench i.e. Kamal Kishore Chandak Vs. ITO 103 TTJ 843 (Jd) wherein it has been held that the averment of the affidavit filed in support of the agriculture income remained uncontroverted and the ld Assessing Officer was not justified in making addition under the head agricultural income in absence of sale bill. It is also undisputed fact that the assessee has not maintained books of account as he w .....

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ent and market who are the technical person and authentic. After considering both the reports, the ld AR argued that on that basis, the actual income from the agricultural income comes much more than disclosed by the assessee. It is undisputed fact that the land is fertile, the water in full for irrigation, the irrigation is done by canal and tube well both, crop of wheat is in very good position, there is also the garden of guavas where the fruit are in very good quantity as the Inspector himse .....

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quested by the ld AR that details given by the assessee may be considered in true perspective and prayed to delete the addition confirmed by the ld CIT(A). 6. At the outset, the ld DR has vehemently supported the order of the ld CIT(A). 7. We have heard the rival contentions of both the parties and perused the material available on the record. The findings given by the lower authorities are contradictory even the assessee s submission is also contradictory. It is undisputed fact that ownership a .....

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gainst confirming the addition of ₹ 40,60,000/- U/s 68 of the Act. The ld Assessing Officer observed that during the year under consideration, on perusal of bank account of assessee, it was found that huge transaction with other party for giving and accepting payment and depositing cash during the year under consideration was found. The ld Assessing Officer observed that the assessee has disclosed excessive agricultural income. He gave reasonable opportunity of being heard on this issue. I .....

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y observing as under:- 6. I have considered facts of the case. It is noted that the appellant has received ₹ 51,25,000/- from six different persons. The AO made the addition on the ground that the creditors were not produced before him in-spite of giving several opportunities to him. He could not furnish the confirmation or income tax details of these persons. In the remand/Rule 46A proceedings the AO again gave opportunity to the appellant to produce the creditors. In the report the AO ha .....

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van Choudhary (in respect of Shri Badri Jakhar), it is submitted by the AO that these are self serving documents and the appellant had failed to establish the creditworthiness of the creditors and genuineness of transactions. He could not produce the creditors for verification and examination on oath. Hence, the creditworthiness of the creditors and genuineness of transactions could not be established. 6.1 Now, coming to the facts of the case it is noted that the appellant had produced three cre .....

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hing on record to show that the appellant was a property dealer. The appellant has shown meagre income from house property and interest and has filed his return of ₹ 11,790/- only. Hence, it cannot be said that the appellant was involved in property dealing. Merely file of affidavit which is nothing but a self service document, does not discharge the onus which lies on the appellant to establish genuineness of the transaction. It is noted that the appellant has failed to give any evidence .....

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roduce the creditor. The appellant has, however, failed to do so in-spite of opportunities given to him. 6.4 As regards Shri Badri Jakhar, it is noted that the appellant has changed his stand in respect of this creditor also. The appellant now claims that the money was not received from Shri Badri Jakhar but from a firm where son of the creditor was a partner. Shri Badri Jakhar was also not produced before the AO to support the claim of the appellant. 6.5 It is obvious from the facts discussed a .....

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ed by him in support of his claim. The mere fact that the amount has been received by cheque does not establish the genuineness of the credit shown by the appellant, as held by the Hon ble Guwahati High Court in the case of N.C. Kothari (264 ITR 254). 6.6 So far as the claim of the appellant that the addition could not be made u/s 68 is concerned, it is seen that the AO has not mentioned any section while making the impugned addition. It, therefore, cannot be presumed that the addition has been .....

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and Jagdish Yadav amounting to ₹ 26,60,000/-, ₹ 5,00,000/- and ₹ 15,00,000/- respectively is confirmed. 11. Now the assessee is in appeal before us. The ld AR of the assessee has submitted that the deposits in the bank account are on account of sale proceed agricultural income, from the sale of property of other persons being the assessee power of attorney holder, advance received for investment in property and one unsecured loans received. It is submitted that Shri K.K. Jhaka .....

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July through cheque No. 115514 and 115515. The ld AR further argued that the assessee made an agreement with Sri K.K. Jhakar on 22nd December, 2008 to sale the plot No. 31-33 of Hanuman Vatika II, Tagore Nagar, Ajmer Road, Jaipur for ₹ 36.60 lacs. The assessee received ₹ 5.00 lacs vide cheque No. 115511 on 30/06/2008. Thus, total amount received from Shri K.K. Jhakar is explained by the assessee. He relied upon various case laws for this purpose. ₹ 15.00 lacs received from Shr .....

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d made by the assessee (power of attorney holder on plot No. 333, Guru Jambeshwar Nagar-A, Vaishali Nagar, Jaipur of Smt. Poonam Prasad, W/o- Shri Mahaveer Prasad) with Shri Kalyan Sahay Yadav. The assessee received ₹ 7.5 lacs vide cheque No. 14482 on 05/11/2008. Vide registered sale agreement dated 05/11/2008 between assessee and Shri Kali Charan Yadav (power of attorney holder on plot No. 332, Guru Jambeshwar Nagar-A, Vaishali Nagar, Jaipur), the assessee received ₹ 7.50 lacs vide .....

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assessee has received this loan through cheque No. 985325 dated 04/10/2008 from this firm, which is regular IT assessee and its PAN No. AABFC 0104 E. The affidavit of Shri Ram Jeevan Choudhary had already been filed. The ld AR has drawn our attention on page NO. 85-86 of the paper book. The ld Assessing Officer had not made any inquiry and not issued summons U/s 131 of the Act to the depositor for verification, which was credited on 06th October, 2008 in the bank account maintained with Oriental .....

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ned therein for have to be read as the fact binding upon the income tax authority. He relied on the decision in the case of Mehta Pareek & Co. 30 ITR 181 (SC), ITO Vs Dr. Tejgopal Bhatnagar 20 TW 368 (Jp), Paras Cotton Company Vs. CIT (2003) 30 TW 168 (JD), CIT Vs Lunard Dimond Ltd. 281 ITR 1 (Del) and CIT Vs Bhawani Oil Mills (P) Ltd. 239 CTR 445. He further relied on the following case laws:- (i) Sohan Lal Sahu 29 TW 9(JP) (ii) CIT Vs Bhai Chand H. Gandhi 141 ITR 67 (Bom). (iii) Ms. Mayawa .....

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