Dr M Bhaskara Rao, Jangareddigudem v. The ITO, Ward-2, Eluru

ITA 282/VIZ/2009 | 2004-2005
Pronouncement Date: 02-12-2010 | Result: Dismissed

Appeal Details

RSA Number 28225314 RSA 2009
Assessee PAN ADCPM6492P
Bench Visakhapatnam
Appeal Number ITA 282/VIZ/2009
Duration Of Justice 1 year(s) 6 month(s) 7 day(s)
Appellant Dr M Bhaskara Rao, Jangareddigudem
Respondent The ITO, Ward-2, Eluru
Appeal Type Income Tax Appeal
Pronouncement Date 02-12-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 02-12-2010
Date Of Final Hearing 08-11-2010
Next Hearing Date 08-11-2010
Assessment Year 2004-2005
Appeal Filed On 26-05-2009
Judgment Text
ITA NO.282 OF 2009 DR.M.BHASKARA RAO JANGAREDDIGUDE M PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NO. 282/VIZAG/2009 ASSESSMENT YEAR: 2004-05 DR. M. BHASKARA RAO JANGAREDDYGUDEM VS. ITO WARD-2 ELURU (APPELLANT) PAN NO: ADCPM 6492 P (RESPONDENT) APPELLANT BY: SHRI G.V.N. HARI CA RESPONDENT BY: SHRI J.IRI KUMAR DR ORDER PER SHRI B. R. BASKARAN ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 9.3.2009 PASSED BY LEARNED CIT(A) RAJAHMUNDRY AND IT RELATES TO THE ASSESSMENT YEAR 2004-05. 2. THE ADDITION OF RS.3 19 200/- PERTAINING TO THE CASH CREDIT FOUND IN THE CAPITAL ACCOUNT OF THE ASSESSEE HAVING BEEN CO NFIRMED BY THE LEARNED CIT(A) THE ASSESSEE IS IN APPEAL BEFORE US. 3. THE FACTS RELATING TO THE SAID ADDITION ARE STAT ED IN BRIEF. THE ASSESSEE HAD CREDITED A SUM OF RS.4 19 200/- AS AGR ICULTURAL INCOME IN HIS CAPITAL ACCOUNT. THE ASSESSEE CLARIFIED THAT HE HAD DERIVED AGRICULTURAL INCOME OF RS.1.00 LAKH FROM 10.10 ACRES OF AGRICULT URAL LAND HELD BY HIM AND THE BALANCE AMOUNT OF RS.3 19 200/- REPRESENTS AGRICULTURAL INCOME ITA NO.282 OF 2009 DR.M.BHASKARA RAO JANGAREDDIGUDE M PAGE 2 OF 4 BELONGING TO THE HUF OF HIS FATHER. IT WAS STATED TH AT THE ASSESSEE RECEIVED THE SAID AGRICULTURAL INCOME OF RS.3 19 200/- AND H ENCE THE SAME WAS CREDITED IN HIS CAPITAL ACCOUNT. THE ASSESSEES FAT HER FILED AN AFFIDAVIT IN WHICH IT WAS STATED THAT THE HUF HELD 17.89 ACRES O F AGRICULTURAL LAND AND THE INCOME RECEIVED THERE FROM WAS MISTAKENLY CREDI TED IN THE CAPITAL ACCOUNT OF THE ASSESSEE BY THE ACCOUNTANT. THE ASSE SSING OFFICER DID NOT ACCEPT THE ABOVE SAID EXPLANATION OF THE ASSESSEE F OR THE FOLLOWING REASONS: A) THE FATHER OF THE ASSESSEE DID NOT MENTION ABOUT THE QUANTUM OF AGRICULTURAL INCOME EARNED BY HUF. B) THE ASSESSEE DID NOT RECEIVE SUCH KIND OF AGRICU LTURAL INCOME BELONGING TO HUF IN EARLIER YEARS. C) THOUGH THE IMPUGNED AGRICULTURAL INCOME WAS CRED ITED IN THE CAPITAL ACCOUNT THE CORRESPONDING AMOUNT WAS NOT S HOWN AS PAYABLE TO THE HUF IN THE BALANCE SHEET. D) THE ASSESSEE HAS UTILIZED THE SAID INCOME FOR HI S INDIVIDUAL PURPOSES. E) A SUM OF RS.2 19 200/- OUT OF THE ABOVE SAID AGR ICULTURAL INCOME OF RS.3.19 LAKHS WAS CLAIMED TO HAVE BEEN RE CEIVED BY WAY OF CHEQUES FROM THE LESSEE OF THE LAND NAMED SH RI S. RAMA KRISHNA. BUT THE ASSESSING OFFICER NOTICED THA T THERE WERE CASH DEPOSITS OF EQUAL AMOUNT PRIOR TO THE ISS UE OF CHEQUES TO THE ASSESSEE. F) THERE WAS NO RECORD WHATSOEVER FOR THE ALLEGED LEASE OF LAND CLAIMED TO HAVE BEEN GIVEN TO SHRI S. RAMA KRISHNA. HENCE THE ASSESSING OFFICER ADDED THE AMOUNT OF RS. 3 19 200/- TO THE TOTAL INCOME OF THE ASSESSEE. THE ASSESSEE COULD NOT SUCC EED IN HIS APPEAL FILED BEFORE THE LEARNED CIT (A). HENCE THE ASSESSEE IS I N APPEAL BEFORE US. ITA NO.282 OF 2009 DR.M.BHASKARA RAO JANGAREDDIGUDE M PAGE 3 OF 4 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND CAREFULL Y PERUSED THE RECORD. IT IS NOT IN DISPUTE THAT THE IMPUGNED AMOU NT OF RS.3 19 200/- FOUND CREDITED IN THE CAPITAL ACCOUNT OF THE ASSESS EE. UNDER SECTION 68 OF THE ACT THE ASSESSEE HAS TO DISCHARGE THE BURDEN O F PROOF PLACED UPON HIM IN RESPECT OF THE AMOUNT FOUND CREDITED IN HIS BOOK S OF ACCOUNT. THE LEARNED CIT (A) HAS OBSERVED THAT THE ASSESSEE HAS FAILED TO PROVE HIS SUBMISSIONS IN THIS REGARD. HIS OBSERVATION ON TH IS ISSUE IS EXTRACTED BELOW: 4.2. AFTER HEARING THE LEARNED AUTHORISED REPRESEN TATIVE AND ON A CAREFUL CONSIDERATION OF THE FACTS RELATING TO THE ISSUE IT MAY BE STATED THAT HE ASSESSING OFFICER HAS MADE OU T A CAST- IRON CASE REGARDING AN UNSUBSTANTIATED CLAIM OF AGR ICULTURAL INCOME IN RESPECT OF THE HUF OF THE FATHER OF THE A PPELLANT. THE SEQUENCE OF FACTS BEING THE FIRST TIME CLAIM OF AG RICULTURAL INCOME OF THE HUF OF THE APPELLANTS FATHER WITHOUT ANY EVIDENCE OF HAVING DISCLOSED SUCH INCOME IN THE HAN DS OF THE HUF DURING THE RELEVANT YEAR AND IN THE EARLIER YEA RS THE CLAIM OF AGRICULTURAL OPERATIONS BY THE ALLEGED LESSEE SH RI SAKUNALA RAMAKRISHNA WITHOUT ANY SUPPORTING EVIDENCES REGARD ING ANY WRITTEN OR ORAL LEASE CONTRACT LACK OF EVIDENCE RE GARDING ANY EXPENDITURE RELATING TO THE AGRICULTURAL OPERATIONS SALE OF AGRICULTURAL PRODUCE CASH DEPOSITS IN SHRI SAKUNAL A RAMAKRISHNAS BANK ACCOUNT IMMEDIATELY PRIOR TO THE TRANSFER OF THE FUNDS TO THE APPELLANT ETC. ALL LEAD TO THE IN ESCAPABLE CONCLUSION THAT THE CLAIM OF AGRICULTURAL INCOME FR OM THE HUF IS UNDOUBTEDLY AN UNSUBSTANTIATED ONE. SINCE THE APPEL LANT HAS NOT BEEN ABLE TO CONVINCE THE ASSESSING OFFICER OR FOR THAT MATER THE FIRST APPELLATE AUTHORITY ABOUT THE EARN ING OF AGRICULTURAL INCOME OF RS.3 19 000/- BY THE HUF OF HIS FATHER WITH COGENT EXPLANATION AND CREDIBLE EVIDENCES THE TREATMENT OF A SUM OF RS.3 19 200 AS INCOME OF THE APPELLANT FROM UNDISCLOSED SOURCES IN THE GARB OF AGRICULTURAL INC OME DOES NOT CALL FOR INTERFERENCE. 5. IN VIEW OF THE ABOVE WE ARE OF THAT THE ASSESSEE HAS FAILED TO DISCHARGE THE BURDEN OF PROOF PLACED UPON HIM IN RE SPECT OF THE IMPUGNED ITA NO.282 OF 2009 DR.M.BHASKARA RAO JANGAREDDIGUDE M PAGE 4 OF 4 CREDIT OF RS.3 19 200/- I.E. THE ASSESSEE COULD NO T SUBSTANTIATE HIS CLAIM THAT THE IMPUGNED CREDIT REPRESENTS THE AGRICULTURA L INCOME BELONGING TO HIS FATHERS HUF AND ACCORDINGLY CONFIRM THE ORDER OF L EARNED CIT(A) ON THIS ISSUE. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON 2 ND DECEMBER 2010. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE: 02-12-2010 COPY TO 1 DR. M. BHASKARA RAO ELURU ROAD JANGAREDDIGUDEM WEST GODAVARI 2 THE ITO WARD-2 ELURU 3 4. THE CIT RAJAHMUNDRY THE CIT(A) RAJAHMUNDRY 5 THE DR ITAT VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM