Shri Mahendra Singh Charan, Jodhpur v. ITO,Wad-2(2), Jodhpur

ITA 159/JODH/2018 | 2011-2012
Pronouncement Date: 26-11-2019 | Result: Allowed

Appeal Details

RSA Number 15923314 RSA 2018
Assessee PAN AEVPC3879E
Bench Jodhpur
Appeal Number ITA 159/JODH/2018
Duration Of Justice 1 year(s) 7 month(s) 19 day(s)
Appellant Shri Mahendra Singh Charan, Jodhpur
Respondent ITO,Wad-2(2), Jodhpur
Appeal Type Income Tax Appeal
Pronouncement Date 26-11-2019
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 26-11-2019
Last Hearing Date 24-05-2018
First Hearing Date 24-05-2018
Assessment Year 2011-2012
Appeal Filed On 06-04-2018
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH ES SMC JODHPUR BEFORE: SHRI. N.K.SAINI VICE PRESIDENT ITA NO.159/JODH/2018 ASSESSMENT YEAR : 2011-12 SHRI MAHENDRA SINGH CHARAN S/O SHRI KARNI DAN CHARAN HARI OM MARKET BUS STATION MATHANIA THESIL OSIYAN JODHPUR VS. THE ITO WARD 2(2) JODHPUR AND CIT(A)-1 JODHPUR PAN NO: AEVPC3879E APPELLANT RESPONDENT ASSESSEE BY : SHRI MAHESH GAHLOT ADVOCATE REVENUE BY : SHRI GIRISH MEHTA JCIT DR DATE OF HEARING : 26/11/2019 DATE OF PRONOUNCEMENT : 26 /11/2019 / ORDER PER N.K. SAINI VICE PRESIDENT THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DT. 28/02/2018 OF LD. CIT(A)-1 JODHPUR. 2. FOLLOWING GROUND HAS BEEN RAISED IN THIS APPEAL: '1) WHETHER ON THE FACTS AND INTEREST HE CIRCUMSTAN CES OF THE CASE THE LD. CIT(APPEALS) WAS JUSTIFIED IN RESTRICTING THE ADDIT ION OF RS. 6 00 000/- ON ACCOUNT OF UNDISCLOSED INCOME FROM UNEXPLAINED SOURCES FOR THE PURCHASE OF LAND IN THE F.Y. 2010-11 AND IN MAKING THE ADDITION OF RS. 1 50 000/ - VIDE THE ORDER DATED 28/02/2018 ON HYPOTHECATION BASIS TREATING IT AS THE REGULAR INCOME OF THE APPELLANT ASSESSEE FOR THE A.Y. 2011-12. THAT THE APPELLANT RESERVES THE RIGHT TO ADD AMEND ALTER DELETE OR MODIFY OR WITHDRAW ANY OR ALL OF THE ABOVE GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING.' 3. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSIN G OFFICER NOTICED THAT THE ASSESSEE HAD PURCHASED A PIECE OF LAND IN CONSIDERA TION OF RS. 6 00 000/- ON 15/12/2010 AND THE ENTIRE AMOUNT WAS PAID IN CASH. HE FURTHER OBSERVED THAT THE ASSESSEE DID NOT FILE THE RETURN OF INCOME SO T HE SOURCE OF INVESTMENT MADE BY HIM AMOUNTING TO RS. 6 00 000/- WAS NOT ASCERTAI NABLE. HE REQUESTED THE 2 ASSESSEE TO PROVIDE THE SOURCE AND PROOF OF CASH PA YMENT FOR PURCHASE OF ABOVE SAID LAND. SINCE THE ASSESSEE DID NOT FURNISH THE EVIDENCE THE ASSESSING OFFICER INITIATED THE PROCEEDINGS UNDER SECTION 148 OF THE INCOME TAX ACT 1961 (HEREINAFTER REFERRED TO AS ACT). AS THE ASSESSEE DID NOT COMPLIED WITH THE STATUTORY NOTICES THE ASSESSING OFFICER MADE THE A DDITION OF RS. 6 00 000/- AND ALSO ESTIMATED THE INCOME AT RS. 2 00 000/-. ACCORD INGLY THE INCOME WAS ASSESSED AT RS. 8 00 000/- BY PASSING THE ASSESSMEN T ORDER DATED. 05/02/2015 UNDER SECTION 144 R.W.S 147 OF THE ACT. 4. BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) AND FILED VARIOUS DETAILS VIZ. COPIES OF INCOME TAX RET URNS FILED IN SUBSEQUENT YEARS COPIES OF ACCOUNT CONTAINING DETAILS OF FIXED ASSET S CAPITAL ACCOUNT TRADING ACCOUNT AND P&L ACCOUNT BALANCE SHEET FOR THE YEAR ENDED ON 31/03/2007 TO 31/03/2011. THE ASSESSEE ALSO FURNISHED BANK STATE MENT FOR THE PERIOD FROM 01/04/2008 TO 30/04/2011 ALONGWITH AFFIDAVIT ASSERT ING THAT THE AGRICULTURAL LAND WAS PURCHASED FOR RS. 6 00 000/- IN F.Y. 2010-11 OU T OF THE DISCLOSED SOURCES. THE LD. CIT(A) FORWARDED THE SUBMISSIONS AND EVIDENCES FILED BY THE ASSESSEE UNDER RULE 46A OF THE INCOME TAX RULES 1962 TO THE ASSES SING OFFICER FOR HIS COMMENTS. 4.1 LD. CIT(A) OBSERVED THAT THE ASSESSING OFFICER SPECIFICALLY POINTED OUT IN THE REMAND REPORT THAT HE ASSESSEE FAILED TO ESTABL ISH THAT ENTIRE SALE PROCEEDS OF BUSINESS WERE DEPOSITED IN THE BANK ACCOUNT AND THE INVESTMENT IN PURCHASE OF LAND WAS OUT OF THE WITHDRAWALS FROM THE BANK AC COUNT. ASSESSING OFFICER ALSO FOUND DIFFERENCE IN THE INTEREST THE TRADING ACCOU NT P&L ACCOUNT AND BALANCE SHEET FOR THE YEAR ENDING ON 31/03/2010 AND 31/03/2 011 AND THAT THE ASSESSING OFFICER POINTED OUT THAT THE ASSESSEE DECLARED HIS INCOME AS PER THE PROVISIONS OF SECTION 44AD MEANING THEREBY THAT HE HAD NOT KEP T PROPER BOOKS OF ACCOUNTS IN RESPECT OF HIS BUSINESS. THE LD. CIT(A) SUSTAINED THE ADDITION MADE BY THE ASSESSING OFFICER BY OBSERVING THAT THE OBSE RVATION OF THE ASSESSING OFFICER CONCLUSIVELY PROVED THAT THE SOURCE OF INCO ME OF RS. 6 00 000/- IN 3 PURCHASE OF LAND REMAINS UNEXPLAINED. AS REGARDS TO THE ESTIMATION OF BUSINESS INCOME AT RS. 2 00 000/- THE ASSESSEE SUBMITTED THA T IT WAS ON THE PRESUMPTION OF THE ASSESSING OFFICER WITHOUT BRINGING ANY MATER IAL ON THE RECORD. THE LD. CIT(A) BY CONSIDERING THE NATURE OF ASSESSEE'S BUSI NESS DOCUMENTS AND DETAILS FURNISHED BEFORE HIM ESTIMATED THE INCOME AT RS. 1 50 000/-. 5. NOW THE ASSESSEE IS IN APPEAL. 6. THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW AND FURTHER SUBMITTED THAT AL L THE DETAILS WERE FURNISHED BEFORE THE ASSESSING OFFICER AND THE LD. CIT(A) AND THAT IN THE COPY OF THE CASH BOOK FURNISHED BY THE ASSESSEE THE INCOME OF RS. 6 00 000/- FOR PURCHASE OF AGRICULTURAL LAND AT MATHANIA HAD BEEN SHOWN ON 15/ 12/2010 A REFERENCE WAS MADE TO PAGE NO. 58 OF THE ASSESSEE'S PAPER BOOK. I T WAS FURTHER SUBMITTED THAT THE ASSESSSEE WAS AN AGRICULTURIST AND EARNED INCOM E FROM THE SALE OF AGRICULTURE PRODUCE AS WELL AS SALE OF SEEDS AND TH AT THE INCOME OF THE ASSESSEE WAS BELOW TAXABLE LIMIT THEREFORE NO INCOME TAX RE TURN WAS FURNISHED FOR THE YEAR UNDER CONSIDERATION. IT WAS FURTHER SUBMITTED THAT THE ASSESSEE PURCHASED THE LAND FROM HIS EARNING OF THE SMALL BUSINESS AND PAST SAVINGS WHICH WERE DULY REFLECTED IN HIS CASH BOOK COPY OF WHICH WAS FURNI SHED BEFORE THE ASSESSING OFFICER AND THE LD. CIT(A). THEREFORE THE ADDITION MADE BY THE ASSESSING OFFICER AND SUSTAINED BY THE LD. CIT(A) WAS NOT JUSTIFIED. IT WAS FURTHER SUBMITTED THAT THE INCOME ESTIMATED BY THE LD. CIT(A) AT RS. 1 50 000/ - WAS ALSO HIGHLY EXCESSIVE. 7. IN HIS RIVAL SUBMISSIONS THE LD. DR STRONGLY SUP PORTED THE ORDERS OF THE AUTHORITIES BELOW. 8. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PA RTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CA SE IT IS NOTICED THAT THE ASSESSEE FURNISHED THE BALANCE SHEET TRADING ACCOU NT P&L ACCOUNT FOR THE VARIOUS YEARS COPY OF WHICH ARE PLACED AT PAGE NOS . 37 TO 46 OF THE ASSESSEE'S 4 COMPILATION. THE ASSESSEE ALSO FURNISHED THE COPY O F THE CASH BOOK FOR THE F.Y. 2010-11 RELEVANT TO THE ASSESSMENT YEAR UNDER CONSI DERATION WHICH IS PLACED AT PAGE NOS. 47 TO 63 OF THE ASSESSEE'S PAPER BOOK. T HE ASSESSEE ALSO FURNISHED THE COPIES OF THE BANK STATEMENT WHICH ARE PLACED ON TH E RECORD. IN THE COPY OF CASH BOOK DT. 15/12/2010 THE ASSESSEE HAD SHOWN TH E PAYMENT FOR PURCHASE OF AGRICULTURAL LAND FOR RS. 6 00 000/- AND SUFFICIENT CASH BALANCE WAS AVAILABLE WITH THE ASSESSEE BEFORE MAKING THESE PAYMENTS. I THEREF ORE BY CONSIDERING THE PECULIAR FACTS OF THIS CASE PARTICULARLY THIS FACT THAT THE ASSESSEE WAS ENGAGED IN THE AGRICULTURAL ACTIVITY GROWING AND SELLING T HE AGRICULTURAL SEEDS FOR SO MANY YEARS AND THAT THE SUFFICIENT CASH IN HAND WAS AVAI LABLE AS PER THE COPY OF THE CASH BOOK FURNISHED BEFORE THE AUTHORITIES BELOW D ELETE THE ADDITION OF RS. 6 00 000/- MADE BY THE ASSESSING OFFICER AND SUSTAI NED BY THE LD. CIT(A). 9. AS REGARDS TO THE OTHER ADDITION RELATING TO EST IMATIONS OF THE BUSINESS INCOME IT IS NOTICED THAT NEITHER THE ASSESSING OF FICER NOR THE LD. CIT(A) HAS GIVEN ANY BASIS FOR THEIR PRESUMPTION FOR ESTIMATIN G THE INCOME. I THEREFORE BY KEEPING IN VIEW THE PRINCIPLES OF NATURAL JUSTICE D EEM IT FAIR AND REASONABLE TO ESTIMATE THE INCOME OF THE ASSESSEE FROM THE BUSINE SS AT RS. 1 20 000/- INSTEAD OF RS. 1 50 000/- ESTIMATED BY THE LD. CIT(A). 10. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 26 /11/201 9) SD/- ( N.K. SAINI) VICE PRESIDENT AG DATE: 26/11/2019 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. CIT 4. THE CIT(A) 5. DR ITAT JODHPUR 6. GUARD FILE