TMI Blog2022 (1) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... ural holdings are not disputed. Absence of details of crops grown and evidence of sale of Agricultural produce in the form of bills can be a basis to doubt the quantum of Agricultural income but cannot be the basis the treat the entire Agricultural income as income from other sources, in the peculiar facts and circumstances of the case.We therefore accept the plea of the Assessee in this regard and delete the addition made by the AO in both the AYs. Unexplained expenditure u/s. 69C being the LIC Premium paid by the appellant's daughter - reliance on documents found during the course of search u/s 132 - HELD THAT:- Under section 292C of the Act, there is a presumption that the contents of the documents found during the course of search u/s 132 of the Act are true. In the light of the aforesaid provisions, the revenue authorities have presumed that the premium on LIC policy, which is admittedly in the name of Dr. M. K. Girija has been paid by the Assessee. There can be no presumption that because this receipt was found in the course of search of the assessee that it is only the assessee who has paid premium. In fact, the presumption is that it is only Dr.M.K.Girija, who has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 012 No notice u/s. 143(2) issued. 5. There was a search and seizure operation conducted u/s/.132 of the Act in the case of the Assessee on 18.7.2013, as part of the search operations conducted in the case of M/s.Ananda Social Educational Trust. The Assessee filed return of income for all the aforesaid three AYs in response to notice u/s.153A of the Act, declaring Net Agricultural income of ₹ 1,26,500, ₹ 1,02,000 and ₹ 1,12,000 respectively for AY 2009-10 to 2011-12. 6. In the proceedings u/s.153A of the Act, the AO called for details of Agricultural Income. The Assessee gave details of land holdings and documents in respect of Agricultural lands of 2 Acres in Belthur Village, Malavalli Taluk, Mandya District, and lands in S.No.48, at Byregowdanahalli, Nelamangala Taluk and Kadakola Village, Mysore Taluk in S.No.35 in the name of the Assessee s son one M.K.Virapaksha. The Assessee could not produce the details of the crop and its sale bills and therefore the AO treated the agricultural income declared by the Assessee as Income from other sources and brought the same to tax as undisclosed income. The order of the AO was con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 143(2) within the time contemplated by law was issued, those assessments become final and can be disturbed only if incriminating material is found in the course of search. He highlighted the fact that both the additions made with regard to Agricultural income in all the three AYs have no relevance whatsoever to any material found in the course of search, which are alleged to be relating to the Assessee and in relation to Agricultural income declared by the Assessee. Since the addition in question have been made without any reference to any incriminating material found as a result of search, both the additions made by the AO deserves to be deleted. 8. The learned DR relied on the order of the CIT(A) and submitted that the scope of assessment proceedings u/s.153A of the Act is not limited to material found in the course of search and in this regard reiterated the ratio laid down by Hon ble Karnataka High Court in the case of Canara Housing Development Vs. DCIT (2014) 49 Taxxman.com 98 (Karn.). 9. We have considered the rival submissions. In the present case, the assessment in all the three AYs 2008-09 to 2010-11 have already been completed prior to the date of search in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gricultural holdings are not disputed. Absence of details of crops grown and evidence of sale of Agricultural produce in the form of bills can be a basis to doubt the quantum of Agricultural income but cannot be the basis the treat the entire Agricultural income as income from other sources, in the peculiar facts and circumstances of the case. We therefore accept the plea of the Assessee in this regard and delete the addition made by the AO in both the AYs. 12. Apart from the common issue in all the appeals i.e., the issue by which the AO treated the agricultural income shown by the assessee in the return of income from other sources, there are certain other issues that have to be adjudicated in ITA Nos.683 to 685/Bang/2020. 13. In ITA No.683/Bang/2020, ground No.3 raised by the assessee reads as follows: 3. The learned CIT[A] is not justified in upholding the addition of₹ 1,00,000/- as unexplained expenditure u/s. 69C of the Act being the LIC Premium paid by the appellant's daughter Dr.M.K.Girija based on a receipt that was found and seized in course of search without appreciating that the said premium was not paid by the appellant especially since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This ground is similar to ground decided in the earlier paragraph with regard to contribution to LIC premium. For the reasons stated therein, the addition made by the AO confirmed by the CIT(A) is directed to be deleted. 18. In ITA No.685/Bang/2020, ground No.3 raised by the assessee reads as follows: 3. The learned CIT[A] is not justified in upholding the addition of ₹ 28,000/- made in the hands of the appellant as unexplained expenditure being the investment in NSC by the appellant's daughter Dr.M.K.Girija based on a NSC certificate found and seized in course of search without appreciating that the said investment was not made by the appellant especially since the investment was standing in the name of the appellant's daughter who is a Doctor and hence the addition made in the hands of the appellant is unjustified and ought to have been deleted. 19. From the reading of the aforesaid ground, it will be clear that the NSC certificate found in the course of search admittedly stood in the name of Dr. M. K. Girija and therefore the assessee cannot be asked to explain the source. I am therefore of the view that this addition cannot be sustained and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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