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TMI Blog2024 (9) TMI 1455X X X X Extracts X X X X X X X X Extracts X X X X ..... artly dismissed. Operative portion of the impugned order reads as under:- 8. In ITA No.2257/2013, apart from the issue of exemption u/s.54F which has already been discussed above, additions were made on account of: Income from sale of trees Rs. 22,00,000/- Un-explained investment Rs. 11,03,608/- The assessee has assailed the addition of Rs. 22.00 Lakhs from the sale of trees as un-explained income. After perusal of impugned order and the assessment order it is evident that the assessee has not produced any reliable evidence to show the sale of trees. The Assessing Officer has made detailed enquiry from the locals and Village Administrative Officer (VAO) with regard to nature of activities being carried out by assessee on the agricul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax Act, 1961. 4. At the time of admission of this Tax Case Appeal, the following substantial questions of law was framed for being answered:- "Whether the Tribunal is correct in law in sustaining the assessment of agricultural income reported as unexplained income based on the enquiry report of the Income Tax Inspector which report was not provided to the appellant for rebuttal, proving and establishing the gross violation of the principles of natural justice as well as the perversity/misdirection in the decision rendered in relation thereto?" 5. Earlier, an order came to be passed on 28.12.2011 under Section 144(A) of the Income Tax Act, 1961 by the Joint Commissioner of Income Tax. 6. By the aforesaid order, the Joint Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n support of the above, the appellant had also obtained a letter of confirmation from an agent named Thangasamy who had stated that 200 cart loads of country wood were purchased over a period of time and that a total sum of Rs. 22 lakhs was paid to the appellant after deducting a 3% commission of Rs. 68,000/-. during the relevant financial year. 9. Thereafter, assessment was completed under Section 143(3) of the Income Tax Act, 1961 vide Order passed on 29.12.2011. The Assessing Officer had concluded as under:- "Further, in the 'Adangal' given by VAO, the land owned by the assessee at Reddymangudy village was categorized as Tharisu" which means "Barren Land". From the facts and circumstances of the case, it is very much obvious t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the following reasons :- 1) The assessee had never explained orally or in writing with regard to the details of Imprest account. 2) Even in the latest letter filed on 26.12.2011 though he has stated that the Imprest amount is nothing but the salary advance/advance to building contractor for repairs etc. he did not produce any books of accounts or the break up figures for the above said payments nor any details of contractors to whom such advances were given. If the advance to building contractor for repairs had been given, then the sum should have been debited in the profit & loss or capitalized in building account whereas the assessee has failed to show such debits in the P&L account/ balance sheet. Also the assessee has not produced a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income Tax Officer based on information gathered by the Income Tax Officer from the Village Headman. 13. The evidence which department has gathered is long after the felling of trees and sale by the appellant by placing reliance on the statement of the Village Headman. The statement of the Village Headman can at best only corroborate the stand which department based on evidence, if there were other compelling evidence. 14. It was incumbent on the part of the Income Tax Department to have summoned the said Mr.Thangasamy of Alangudi Taluk, Pudukottai District and verified and confirmed whether the said person had indeed given the statement which was produced by the Appellant and if so whether the statement given by the said person wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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