TMI Blog2016 (6) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment. - Decided against assessee. Unexplained investment - whether the agriculture land of roughly 16 acres could generate income, out of which, ₹ 15 lakhs can be spared for investment ? - Held that:- The AO took guidance of income from the bills of sale of sugar cane. It is to be appreciated that bills came to the possession of the assessee, because, sugar cane was sold to cooperative sugar mill, where mandatory bills were raised. Otherwise, in rural background, hardly any bills were issued for sale of crop or sale of plants. Possibly, there cannot be any evidence in the possession of the assessee, because, he was not operating in a very large scale in an organized manner. He has produced bank statement for the last three year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lakhs. He has not filed any return of income. The Annual Information Wing transmitted information with regard to the investment in the insurance policies. On the strength of this information, the ld.AO has recorded reason that income chargeable to tax has escaped the assessment. Accordingly, he issued notice upon the assessee under section 148 of the Income Tax Act on 18.3.2014 which was duly served upon the assessee. The ld.counsel for the assessee has submitted that the AO had not possessed any material which can help him to form an opinion that income has escaped assessment. He was harping upon the information received from DDIT (Investigation), Surat. The AO sought to reopen the assessment without pointing out as to how the assessee fai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g along with my mother, wife and my aunty (father s sister) at Bajat Falia, At Post. Vankal, Tal. Mangrol, Surat. Q.3 Please give the details of household withdrawals and what was your monthly household withdrawals. Ans: The household expenses are being met by from our withdrawal from bank and from sale of nursery saplings. The monthly household expenses will be around ₹ 12,000/- to ₹ 15,000/- Q.4 Please give the source of income of your and your family member Ans: I am receiving agricultural income and running a nursery in the name Hanuman Farm which sells saplings to the customer sand there is no other source of income. Q.5 Are your filing your return of income ? Ans No Q.6 Why are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SBI life Insurance Co. Ltd., policy numbers 55002975105 and 53001287208 of ₹ 9 lakhs and ₹ 6 lakhs respectively. The source of investment made by my father (expired in 2011) and aunty, Shantaben who is holding agricultural land of 58506 sq.meters at Vankal. I have also taken a policy from IndiaFirst Life Insurance Co. and the payment of ₹ 1,00,000/- was paid on 14.09.2011 from my savings bank of Bank of Baroda. 6. The stand of the assessee is that his 89 years old widow aunt, namely, (father s sister), Smt. Shantaben Desai was residing with him. She was holding agriculture land of 58506 sq.meters at Village Vankal. He and his father were holding substantial land. In other words, they were holding 80,030 sq.meters of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erage income of the assessee would range in-between ₹ 4 lakhs to ₹ 4.50 lakhs only. Therefore, the assessee must have some other source of income for making the alleged unexplained investment in LIC. 9. We have considered rival contentions and gone through the record carefully. In our opinion, the ld.Revenue authorities have failed to appreciate the controversy in right perspective. The assessee is a farmer, who is running a nursery also. He has alleged that his old father who died in 2011 at the age of 82 was living with him. Similarly, his father s sister i.e. his aunt having age of 89 years, a widow was also living with him. Instead of treating both these old persons as independent earning members, the ld.Revenue authoriti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... situation, onus was upon the Revenue to demonstrate that assessee has some other source of income, out of which, he has generated ₹ 15 lakhs. The stand of the assessee is that he has no other source except agriculture income. He has saved this income from agriculture operation. Now, it is for the Revenue, who has alleged that the assessee has some other source of income. But, the ld.AO failed to bring any evidence on record to demonstrate generation of such income, apart from agriculture activity. If we go by circumstantial evidence, then, 16 acres of agriculture land along with running of a nursery, could generate ₹ 15 lakhs over a period of time. The AO ought to have not doubted the stand of the assessee. We allow the appeal o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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