Ajay Rajendra Wadiyar , Bodhan v. Income Tax Officer, Ward-2, Nizamabad

ITA 1650/Hyd/2019 | 2016-2017
Pronouncement Date: 09-03-2021 | Result: Allowed

Appeal Details

RSA Number 165022514 RSA 2019
Assessee PAN AAVPW6198E
Bench Hyderabad
Appeal Number ITA 1650/Hyd/2019
Duration Of Justice 1 year(s) 3 month(s) 26 day(s)
Appellant Ajay Rajendra Wadiyar , Bodhan
Respondent Income Tax Officer, Ward-2, Nizamabad
Appeal Type Income Tax Appeal
Pronouncement Date 09-03-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 09-03-2021
Date Of Final Hearing 03-03-2021
Next Hearing Date 03-03-2021
Last Hearing Date 31-12-2020
First Hearing Date 31-12-2020
Assessment Year 2016-2017
Appeal Filed On 13-11-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD SMC - B BENCH : HYDERABAD (THROUGH VIDEO CONFERENC E ) BEFORE SMT. P. MADHAVI DEVI JUDICIAL MEMBER ITA NO. 165 0 /HYD./201 9 ASSESSMENT YEAR: 20 1 6 - 17 SRI AJAY RAJENDRA WADIYAR . VS. ITO WARD 2 BODHAN NIZAMABAD PAN: AA VPW6198E (APPELLANT) (RESPONDENT) FOR ASSESSEE : SH. M.V. ANIL KUMAR AR . FOR REVENUE : SH. SANDEEP MEHTA D.R. DATE OF HEARING : 0 3 / 03 /202 1 DATE OF PRONOUNCEMENT : 09 / 03 /202 1 O R D E R THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF CIT(A) - 5 HYDERABAD DATED 18 . 09. 2019 RELATING TO A.Y. 201 6 - 17 . THIS APPEAL WAS TAKEN UP FOR HEARING THROUGH VIDEO CONFERENCE ON 03.03.2021 AND BOTH THE PARTIES WERE HEARD. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE AN INDIVIDUAL FILED HIS RETURN OF INCOME ON 14.09.2017 DECLARING NIL INCOME AFTER CLAIMING AGRICULTURAL INCOME OF RS.30 00 000/ - FOR THE A.Y 2016 - 17 . THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS AND D URING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE INCOM E TAX ACT 1961 (IN SHORT THE ACT) THE AO EXAMINED THE ACCEPTABILITY OF AGRICULTURAL INCOME OF RS . 30 LAKHS RETURNED BY THE ASSESSEE. THE ASSESSEE WAS THEREFORE ASKED TO PRODUCE BOOKS OF ACCOUNTS AND PROOF OF LANDHOLDINGS AND DETAILS OF HIS BANK ACC OUNTS. IN RESPONSE ITA NO. 1650 /HYD./201 9 AY 2016 - 17 SH. AJAY RAJEDRA WADIYAR 2 ASSESSEE FILED A LETTER DATED 16.11.2018 A ND SUBMITTED THAT HIS ENTIRE FAMILY WAS OWNING 150 ACRES AGRICULTURAL LAND BOTH WET AND DRY A ND I N SUPPORT THEREOF HE FILED COPIES OF PAHANIES. THE ASSESSEE SUBMITTED THAT NO BOOKS OF ACCOUNTS WERE MAINTAINED BY THE ASSESSEE FOR AGRICULTURAL OPERATIONS . THE ASSESSEE WAS FURTHER ASKED TO FURNISH INCOME AND EXPENDITURE STATEMENT EVIDENCE FOR AGRI CULTURAL ACTIVITY EVIDENCE FOR AGRICULTURAL EXPENSES INCURRED NAME AND ADDRESS AND PHONE NUMBERS OF PERSON S IN CHARGE OF THE AGRICULTUR AL OPERATION S AND CASH FLOW STATEMENT ALONG WITH EVIDENCE FOR CASH IN - FLOW/OUT - FLOW. ASSESSEE VIDE LETTER D ATED 16.11.2018 SUBMITTED THAT ASSESSEE WAS DOING ONLY AGRICULTURAL IRRIGATION AND GETTING THE AMOUNT S ON SALE OF PRO DUCE BEING SUGAR CANE MAIZE TURMERIC ETC . AND THAT THERE IS NO INCOME AND EXPENDITURE STATEMENTS; WATER SUPPLY IS THROUGH BOR E S AND CANALS. HE ALSO SUBMITTED THAT FOR AGRICULTURE ACTIVITY ASSESSEE IS RECEIVING THE BILLS DIRECTLY FROM SUGAR CANE M ILLS AND DIRECTLY CREDIT ING THEM TO BANK ACCOUNT. HOWEVER AO WAS NOT SATISFIED WITH THE ASSESSEES CONTENTIONS AND HELD THA T ASSESSEE HAS NOT PROVED THAT HE'S CARRYING ON ANY AGRICULTURAL ACTIVITY AND THAT THE INCOME OF RS.30 LAKHS IS FROM AGRICULTURAL ACTIVITY . T HEREFORE AO DISALLOWED THE SAME AND TREAT ED IT AS INCOME FROM OTHER SOURCES AND BROUGHT IT TO TAX. AGGRIEVED ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) WHO CONFIRMED THE ORDER OF AO AND ASSESSEE IS IN SECOND APPEAL BEFORE THE TRIBUNAL BY RAISING THE FOLLOWING GROUNDS OF APPEAL. 1. YOUR APPELLANT SUBMITS THAT THE CI T(A) OUGHT TO HAVE GIVEN ONE OPPORTUNITY OF HEARING. [TAX EFFECT: RS.9 27 000/ - ] 2. YOUR APPELLANT SUBMITS THAT THE CJT(A) AS WELL AS THE ASSESSING OFFICER OUGHT TO HAVE ACCEPTED THE EXPLANATION THAT THE ENTIRE RECEIPTS IN BANK ACCOUNT IS AGRICULTURAL I NCOME BEING SALE OF AGRICULTURAL PRODUCE ONLY THEREFORE THE ADDITION OF RS.30 00 000/ - IS BAD IN LAW. [TAX EFFECT: RS.9 27 000/ - ] 3. THE CIT(A} AS WELL AS THE ASSESSING OFFICER ERRED I N LAW AND FACTS OF THE CASE IN CONSIDERING THE AGRICULTURAL INCOME OF RS.30 00 000/ - AS UNEXPLAINED IN ABSENCE OF ANY FINDING THAT YOUR APPELLANT HAS ANY OTHER SOURCE OF INCOME. THE ADDITION MAY BE DELETED. [TAX EFFECT: RS.9 27 000/ - ] ITA NO. 1650 /HYD./201 9 AY 2016 - 17 SH. AJAY RAJEDRA WADIYAR 3 4. YOUR APPELLANT SUBMITS THAT ON THE BASIS OF RS. 9 27 000/SAME SET OF FACTS AND EVIDENCE IN THE PAST THE AGRICULTURAL INCOME WAS ACCEPTED FOR THE YEAR UNDER CONSIDERATION THE SAME CANNOT BE UNEXPLAINED. THE ADDITION MAY BE DELETED. [TAX EFFECT: RS.9 27 000/ - ] 5. YOUR APPELLANT SUBMITS THAT THE ASSESSING OFFICER ON SUSPICION OR ASSUMPTION CANNOT CONSIDER THE AGRICULTURAL INCOME AS UNEXPLAINED THE ADDITION MAY BE DELETED. [TAX EFFECT: RS.9 27 000/ - ] 6. YOUR APPELLANT SUBMITS THAT IN ABSENCE OF RS. 9 27 000/ANY BOOKS OF ACCOUNTS MAINTAINED AND IT IS NOT THE CASE OF THE ASSESSING OFFICER THAT ADDITION IS ON ACCOUNT OF SECTION 69 OR 69A OF THE INCOME TAX ACT 1961 THE ADDITION OF RS. 30 00 000/ - AS UNEXPLAINED INCOME IS BAD IN LAW MA BE DELETED. [TAX EFFECT: RS.9 27 000/ - ] 7. ANY OTHER GROUND THAT MAY BE URGED AT THE GENERAL TIME OF HEARING. TOTAL TAX EFFECT RS. 9 27 000/ - 3. LD.COUNSEL FOR ASSESSEE REITERATED SUBMISSIONS MADE BEFORE THE LOWER AUTHORITIES WHILE LD.CIT - DR RELIED ON THE ORDER OF LOWER AUTHORITIES. 4 . HAVING REGARD TO RIVAL CONTENTIONS AND MATERIAL PLACED ON RECORD - I FIND THAT THE CIT (A) HAS DISMISSED ASSESSEES APPEAL FOR NON - APPEARANCE AND FOR NON - PRODUCTION OF ANY EVIDENCE CONTRARY TO THE FINDINGS OF THE AO. I FIND THAT ASSESSEE HAS FILED A PAPER BOOK BEFORE THE TRIBUNAL CONTAINING DETAILS OF AGRICULTURAL LAND AND ALSO THE USAGE OF AGRICULTURAL LAND BY VARIOUS OTHER PERSONS COPIES OF SALE INVOICES IN SUPPORT OF SALES OF AGRICULTURE PRODUCE . H E PRAYED THAT HE MAY BE GIVEN AN OPPORT UNITY TO PRESENT HIS CASE BEFORE THE AUTHORITIES BELOW AND TO PROVE THAT HE HAS BEEN CARRYING AN AGRICULTURAL ACTIVITY DURING THE RELEVANT PERIOD. LD. DR ON THE OTHER HAND OPPOSED THE REMAND OF THE MATTER BACK TO AO SAYING THAT THE ISSUE ITA NO. 1650 /HYD./201 9 AY 2016 - 17 SH. AJAY RAJEDRA WADIYAR 4 HAS BEEN DE ALT WITH AND DISCUSS ED EXTENSIVELY BY THE AO AND THEREFORE THERE IS NO USEFUL PURPOSE IN SETTING ASIDE THE MATTER BACK TO THE FILE OF AO. 5. I FIND THAT THE ASSESSEE HAS MADE A CLAIM THAT HIS ENTIRE FAMILY OWNS 150 ACRES OF AGRICULTURAL LAND AND THAT ASSESSEES SHARE OF LAND IS 30 ACRES. ASSESSEE HAS RETURNED RS. 30 LA KHS AS AGRICULTURAL INCOME WHICH HAS BEEN TOTALLY DENIED BY THE AO. THE AO HAS NOT EXAMINED THE EXTENT OF AGRICULTURAL LAND HELD BY ASSESSEE AND WHETHER ANY AGRICULTURAL INCOME IS DERIVED THEREFROM. AO HAS MERELY GIVEN A FINDING THAT ASSESSEE IS NOT PROVIDING COPIES OF EVIDENCE FOR CARRYING ON ANY AGRICULTURAL OP ERATIONS. CIT(A) HAS NOT DISCUSSED THE ISSUE ON MERITS NOR HAS CONSIDERED EVIDENCE FILED BY ASSESSEE. THEREFORE O NLY IN THE INTEREST OF JUSTICE I DEEM IT FIT AND PROPER TO REMAND THE ISSUE TO THE FILE OF AO FOR A DE - NOVO CONSIDERATION IN ACCORDANCE WITH LAW. ASSESSEE IS ALSO DIRECTED TO COOPERATE WITH AO BY FILING ALL NECESSARY DETAILS. IN THE RESULT THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 09 / 03 / 202 1 . SD/ - (P. MADHAVI DEVI) JUDICIAL MEMBER DATED: 09 TH MARCH 2021 GMV COPY OF ORDER FORWARDED TO: 1. SRI AJAY RAJENDRA WADIYAR C/O M. ANANDAM & CO. C.AS FLAT NO.7A SURYA TOWERS S.P . ROAD SECUNDERABAD 500 003 TELANGANA . 2. ITO WARD 2 NIZAMABAD . 3. ACIT NIZAMABAD RANGE NIZAMABAD 4. CIT( A ) - 5 HYDERABAD. 5 . PR.CIT - 5 HYDERABAD 6 D.R. ITAT HYDERABAD 7 . GUARD FILE ITA NO. 1650 /HYD./201 9 AY 2016 - 17 SH. AJAY RAJEDRA WADIYAR 5 DESCRIPTION DATE INTLS 1. DRAFT DICTATED ON 03/03/2021 2. DRAFT PLACED BEFORE AUTHOR 08/03/2021 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 5 APPROVED DRAFT COMES TO THE SR.P.S./PS 6. KEPT FOR PRONOUNCEMENT ON 09/03/2021 7. FILE SENT TO THE BENCH CLERK 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER