TMI Blog2023 (2) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... ee that the sum declared as agricultural income was on the opening balance of 31.03.2011 of leased lands received in respect of Manepalli lands is correct. The contention of the assessee that the same income which was taxed in Assessment Year 2011-12 against sought to be taxed in Assessment Year 2012-13 is factually found to be correct. The plea of the learned counsel for the Assessee rest on the theory of Telescoping. If income is available to an Assessee, then that income can be explained as a source for an item of investment or expenditure that the Assessee is unable to explain, provided the income was available to the Assessee when the investment or expenditure is made/incurred. The idea is ultimately tax is levied either only on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Agricultural income of Rs.22,21,750 (comprising of Rs. 46,750/- from lands at Devanahalli village and Rs.21,75,000/- from lands at Manepalli village). In an Assessment completed u/s.143(3) of the Act dated 7.3.2014, the AO treated Agricultural income from Devanahalli Village of a sum of Rs.18,17,840/- as unexplained and treated the same as income from other sources. Besides the above the assessee had shown an Advance lease rental received on lease of Agricultural lands of Rs.43,50,000/-. The same was also treated as unexplained cash credit u/s.68 of the Act and added to the total income of the assessee. On the aforesaid two additions the assessee filed appeal before the CIT(A) which was dismissed by the CIT(A) by order dated 24.4.2014. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 011-12, portion of the very same amount of Rs.21,75,000/- cannot again be taxed. The assessee pointed out that the same income cannot be taxed twice. 4. The AO however rejected the contention of the assessee that she had transferred Rs.21,75,000/- from the lease advance already taxed in the Assessment Year 2011-12 for the reason that the return for Assessment Year 2012-13 was filed on 29.12.2012 declaring Rs.21,75,000/- as agricultural income from Manepalli lands which was well before the date of completion of the proceedings for Assessment Year 2011-12 i.e. 7.3.2014. According to the AO, it was only an afterthought of the assessee to explain the bogus income declared under the head 'Agricultural Income' by bringing in the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yer for condonation of delay, I am of the view that the reasons given in the affidavit for condonation of delay are acceptable and would constitute reasonable cause for the delay in filing the appeal and also keeping in mind the ratio laid down in the following decisions, I am of the view that the delay in filing the appeal deserves to be condoned and the same is accordingly condoned based on the ratio laid down in the following decisions that procedural defects should not stand in the way of Assessee getting substantial justice in the matter of payment of taxes. Collector, Land Acquisition vs. MST.Katiji and Others (1987) 167 ITR 471 Concord of India Insurance Co. Ltd., Vs Smt. Nirmala Devi and Others 118 ITR 507, Hon' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was taxed in Assessment Year 2011-12 against sought to be taxed in Assessment Year 2012-13 is factually found to be correct. The plea of the learned counsel for the Assessee rest on the theory of Telescoping. If income is available to an Assessee, then that income can be explained as a source for an item of investment or expenditure that the Assessee is unable to explain, provided the income was available to the Assessee when the investment or expenditure is made/incurred. The idea is ultimately tax is levied either only on the income or only on its application. The theory operates on the basic presumption that when there are undisclosed income and also certain undisclosed investments, then it could be reasonably presumed that the undisclos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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