DCIT, Cochin v. Sri.E.N.Gopakumar, Trichur

ITA 437/COCH/2014 | 2007-2008
Pronouncement Date: 25-10-2016 | Result: Dismissed

Appeal Details

RSA Number 43721914 RSA 2014
Assessee PAN ADHPG8606N
Bench Cochin
Appeal Number ITA 437/COCH/2014
Duration Of Justice 2 year(s) 18 day(s)
Appellant DCIT, Cochin
Respondent Sri.E.N.Gopakumar, Trichur
Appeal Type Income Tax Appeal
Pronouncement Date 25-10-2016
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 25-10-2016
Date Of Final Hearing 29-09-2016
Next Hearing Date 29-09-2016
Assessment Year 2007-2008
Appeal Filed On 07-10-2014
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL : COCHIN BENCH : COCHIN BEFORE SHRI B.P. JAIN HONBLE ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K. HONBLE JUDICIAL MEMBER I T A NO S . 434 TO 440 / COCH /201 4 (A.Y S . 200 4 - 0 5 TO 2010 - 11 ) DCIT CENTRAL CIRCLE - 2 VS SHRI E.N. GOPAKUMAR ERNAKULAM. EDATHIPARAMBIL HOUSE PALISSERRY ANNAMANADA P.O. THRISSUR 680 741. PAN NO. ADHPG8606N (APPELLANT) (RESPONDENT) DATE OF HEARING : 2 9 /0 9 /2016 DATE OF PRONOUNCEMENT : 2 5 /10/2016. ASSESSEE BY : SHRI A . GOPALKRISHNAN C.A. DEPARTMENT BY : S HRI SHANTAM BOSE CIT - D.R. PER B.P. JAIN A.M. : 1. THESE SEVEN APPEALS OF REVENUE ARISE FROM SEVEN DIFFERENT ORDERS OF LD. CIT(A) KOCHI EACH DATED 30.05.2014. SINCE THE ISSUES IN ALL THE APPEALS ARE COMMON THEREFORE ALL THE APPEALS ARE BEING TAKEN UP BY THIS CONSOLIDATED ORDER AS UNDER: - 2. THE APPELLA NT WAS THE RESPONDENT IN ALL THE SEVEN APP E ALS IN ITA NO. 434 - 440/COCH/2014 FILED BEFORE THE HONBLE APPELLATE TRIBUNAL FOR THE ASSESSMENT YEAR 2004 - 05 TO 2010 - 11. THE APP E ALS BEFORE THE HONBLE 2 APPELLATE TRIBUNAL WERE FILED BY THE REVENUE AGAINST THE ORDE RS PASSED BY T HE COMMISSIONER OF INCOME TAX (A) - I KOCHI. 3. THE PETITIONER HAD FILED APPEALS BEFORE THE COMMISSION E R OF INCOME TAX (A) AGAINST THE ASSESSMENT O R DERS PASSED BY THE ASSESSING AUTHORITY. THE ASSESSMENT FOR THE SIX ASSESSMENT YEARS 2004 - 05 T O 200 - 10 WERE COMPLETED U/S 143( 3) R/W SEC. 153A IN CONSEQUENCE OF A SEARCH CARRIED OUT U/S 132 OF THE INCOME TAX ACT 1961. THE ASSESSMENT FOR THE ASSESSMENT YEAR 2010 - 11 WAS PASSED U/S 143( 3). THE COMMISSIONER OF INCOME TAX (A) ALLOWED CERTAIN GROUNDS RAI S ED BY THE PETITIONER IN HIS APPEALS RESULTING IN RELIEF TO THE PETITIONER. THE APPEAL FILED BY THE PETITIONER WERE ALLOWED IN PART. 4. IT IS AGAINST THESE ORDERS OF THE COMMISSIONER OF INCOME TAX (A) THAT THE REVENUE HAS COME BEFORE THE APPELLATE TRIBUNAL IN SECOND APPEALS. THE APPELLATE TRIBUNAL ACCEPTED THE GROUNDS AND CONTENTIONS OF THE REVENUE. THE HONBLE APPELLATE TRIBUNAL SET ASIDE THE ORDERS OF THE CIT(A) THROUGH CONSOLIDATED ORDER DATED 26.10.2015 . THE APPEALS FILED BY THE REVE NUE WERE ALLOWED. 5. WHILE PASSING ORDERS ALLOWING THE APPEALS FILED BY REVENUE CERTAIN MISTAKES OF LAW AND FACTS HAVE OCCURRED WHICH ARE APPARENT FROM THE RECORD. PETITIONER SUBMITTED A PETITION BEFORE THIS APPELLATE TRIBUNAL FOR THE RECTIFICATION OF THESE MISTAKES OF LAW AND FACTS APPARENT ON RECORD. 6. THE APPELLATE TRIBUNAL CONSIDERED THE PETITION SUBMITTED BY THE PETITIONER FAVOURABLY AND APPELLATE TRIBUNAL RESTORED THE APPEAL WITH A 3 VIEW TO AMEND THE ORDER PASSED UNDER SECTION 254(1) OF THE A CT TO RECTIFY THE MISTAKE APPARENT FROM THE RECORDS BY VIRTUE OF THE POWER VESTED UNDER SECTION 254(2) OF THE INCOME TAX ACT. 7. THE LD. COUNSEL FOR THE ASSESSEE FURNISHED BELOW A CHART SHOWING THE ISSUE WISE GROUNDS UNDER CONSIDERATION OF THE INCOME TAX APPELLATE TRIBUNAL IN RESPECT OF THE SEVEN APPEALS AS UNDER: - S ISSUE NO. NATURE OF ISSUES ASSESSMENT YEAR AMOUNT RS. AGGREGATE AMOUNT FOR THE SEVEN ASSESSMENT YEARS (IN RS.) 1 NOTE ACCEPTING THE SOURCE FOR THE CREDIT IN THE CASH FLOW STATEMENT BEING THE WITHDRAWAL FROM THE FIRMS/CONCERN IN WHICH THE ASSESSEE AND OR HIS BROTHER WERE PARTNERS : 2004 - 05 6 56 210.00 6 56 210.00 2 NOT ACCEPTING AS CASH AVAILABLE IN THE TRANSPORT BUSINESS AGAINST NON CASH EXPENSES/DEDUCTION BEING DEPRECIATION ON THE VEHI CLES TAKEN INTO CONSIDERATION IN THE COMPUTATION OF TAXABLE INCOME IN RESPECT OF TRANSPORT BUSINESS WHICH IS TO BE TREATED AS AVAILABLE CASH AND CASH EQUIVALENTS IN THE CASH FLOW STATEMENT. 2004 - 05 2005 - 06 2006 - 07 2007 - 08 2008 - 09 2009 - 10 2010 - 11 8 93 556.00 7 36 260.00 5 25 948.00 4 67 145.00 3 94 875.00 9 83 887.00 10 81 787.0 50 83 458.0 4 3 REJECTION OF THE TREATMENT ADOPTED BY THE ASSESSEE IN RESPECT OF SHARE OF PROFIT FROM ESSEN TRADING CO. A FIRM IN WHICH THE ASSESSEE SHRI E N GOPAKUMAR IS A PARTNER SHOWN AS CONTRA ITEMS S INFLOW AND OUTFLOW IN THE CASH FLOW STATEMENT. 2004 - 05 2005 - 06 2006 - 07 2007 - 08 2008 - 09 2009 - 10 2010 - 11 25 712.00 1 05 945.00 7 276.00 1 41 489.00 3 49 378.00 2 85 062.00 6 34 132.00 15 48 994 .0 4 NOTE ACCEPTING THE SOURCE OF THE FUNDS IN THE CASH FLOW STATEMENTS AGAINST THE TRADE ADVANCE RECEIVED FROM THE CUSTOMER MR. AKBAR HYDROSE TOWARDS SALE OF LAND. 2007 - 08 25 00 000.0 25 00 000.00 5 NOT ACCEPTING THE SOURCE OF FUNDS IN THE CASH FLOW STATEMENT AGAINST THE AMOUNT RECEIVED FROM A CUSTOMER SHRI SINDHU KUMAR T.N. FOR MAKING INVESTMENT IN IMMOVABLE PROPERTIES WITH A VIEW TO EARN INCOME ON SALE/APPRECIATION IN VALUE OF THOSE PROPERTIES. 2008 - 09 2009 - 10 2010 - 11 6 45 000.00 8 55 000.00 5 00 000.00 20 00 000.00 6 NOT ACCEPTING THE SOURCE OF FUNDS IN THE CASH FLOW STATEMENT IN RESPECT OF THE ADVANCE GIVEN FOR THE PURCHASE 5 OF LAND EARLIER SUBSEQUENTLY RECOVERED IN THE SAME YEAR FROM A CUST OMER SHRI M.O. VARAGHES. 2008 - 09 3 00 000.00 3 00 000.00 7 NOT ACCEPTING THE SOURCE OF FUNDS IN THE CASH FLOW STATEMENT BEING THE ADVANCE RECEIVED AGAINST SALE OF FLAT IN PERIYAR RESIDENCY ALUVA FROM A CUSTOMER SHRI T.K. SHAJI. 2010 - 11 5 00 000.00 5 00 000.00 8 AGRICULTURE INCOME FROM ABOUT 80 ACRES TO THE EXTENT NOT ACCEPTED BY THE ASSESSING AUTHORITY. 2009 - 10 2010 - 11 4 50 000.00 4 50 000.00 9 00 000.00 TOTAL 1 34 88 662.0 THE ISSUE WISE GROUNDS ARE AS UNDER : - ISSUE NO. 1: NOT ACCEPTING THE SOURCE FOR THE CREDIT IN THE CASH FLOW STATEMENT BEING THE WITHDRAWAL FROM THE FIRMS/CONCERN IN WHICH THE ASSESSEE AND OR HIS BROTHER WERE PARTNERS. A.Y. AMOUNT 2004 - 05 6 56 210.00 TOTAL 6 56 210.00 8. THE ASSESSEE WAS A PARTNER IN THE FIRM ESSEN OIL INDUSTRIES ALONGWITH HIS BROTHER SHRI E.N. BABY. THIS FIRM IS ASSESSED TO KERALA VALUE ADDED TAX 6 ACT IN THE OFFICE OF THE COMMERCIAL TAX OFFICER CHALAKUDY. THIS FIRM WAS REGULARLY FILING THE RETURNS PRESCRIBED UNDER KVAT ACT. THE ASSESSMENTS UNDER THE KVAT ACT WERE ALSO COMPLETED REGULARITY. THE REGISTRATION NUMBER OF THIS FIRM UNDER THE SALES TAX REGISTRATION NO. 25154558. 9. THIS FIRM DID NOT SUBMIT ITS RETURN OF INCOME AS THE TOTAL INCOME WAS BELOW THE TAXABLE LIMIT. SUBSEQUENTLY THE ASSESSEE AND HIS BROTHER MR. E.N. BABY DECIDED TO START A NEW PARTNERSHIP FIRM UNDER THE NAME M/S. ESSEN TRADING COMPANY. THUS THE FIRM ESSEN TRADING COMPANY WAS FORMED ON 06 - 05 - 2003 WITH THE OBJECT TO ENGAGE IN THE BUSINESS OF MANUFACTU RE AND SALE OF EDIBLE OIL AT ANNAMANADA THRISSUR. 10. ESSEN AGENCIES WAS A SOLE PROPRIETARY CONCERN OWNED BY MR. E.N. BABY THE BROTHER OF THE ASSESSEE. THIS CONCERN WAS ALSO ENGAGED IN BUSINESS. THIS CONCERN WAS ENJOYING OVERDRAFT FACILITIES WITH CATHO LIC SYRIAN BANK (CSB). 11. BOTH CONCERNS NAMELY ESSEN OIL INDUSTRIES AND ESSEN AGENCIES WERE MAINTAINING THE CURRENT AND OVERDRAFT ACCOUNT RESPECTIVELY WITH CATHOLIC SYRIAN BANK. 12. ON THE FORMATION OF THIS NEW PARTNERSHIP FIRM THE ACTIVITIES OF BOTH ESSEN OIL INDUSTRIES AND ESSEN AGENCIES WERE STOPPED AND CLOSED. THE ASSESSEE AND HIS BROTHER LIQUIDATED ALL THE ASSETS OF THESE TWO CONCERNS TO SETTLE ALL LIABILITIES WITH THE SALE PROCEEDS/RECOVERY OF THE ASSETS. 7 13. THE NET EXCESS VALUE RECOVERED AG AINST SALE OF ASSETS OVER THE LIABILITIES OF THESE TWO CONCERNS BELONGED TO THE PARTNERS I.E. THE ASSESSEE AND HIS BROTHER MR. E.N. BABY. 14. AS AND WHEN THE CONCERNS WERE ABLE TO REALIZE THE SALE PROCEEDS OF THE ASSETS AND RECOVER THE DUES FROM ITS DEBT ORS THE LIABILITIES WERE SETTLED. AFTER SETTLING ALL THE LIABILITIES THE EXCESS FUNDS WERE WITHDRAWN BY THE PARTNERS/PROPRIETOR. THUS THE ASSESSEE AND HIS BROTHER E.N. BABY HAVE WITHDRAWN AN AMOUNT OF RS. 6 56 210/ - FROM ESSEN OIL INDUSTRIES AND ESSEN AG ENCIES BY WAY OF DIRECT BANK TRANSFERS FROM THE ACCOUNTS MAINTAINED WITH CATHOLIC SYRIAN BANK ON THE DATES SHOWN BELOW : SL. NO. DATE MANNER OF WITHDRAWALS ACCOUNT NO. FROM WHICH WITHDRAWALS WERE MADE NAME OF THE ACCOUNT HOLDER FROM WHICH WITHDRAWALS WERE MADE ACCOUNT NUMBER OF THE ASSESSEE TO WHICH THE AMOUNT WAS TRANSFERRED AMOUNT (RS.) 1 08/04/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 36 760.00 2 17/04/2003 BANK TRANSFER 105 M/S. ESSEN OIL INDUSTRIES A/C NO. 095124 43 300.00 3 06/05/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES. A/C NO. 095124 26 000.00 4 07/05/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 11 000.00 5 20/05/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 32 000.00 6 29/05/2003 BANK TRANSFER 105 M/S. ESSEN OIL INDUSTRIES A/C NO. 095124 20 000.00 7 29/05/2003 BANK TRANSFER 105 M/S. ESSEN OIL INDUSTRIES A/C NO. 095124 25 000.00 8 11/06/2003 BANK TRANSFER 105 M/S. ESSEN OIL INDUSTRIES A/C NO. 095124 11 000.00 9 18/06/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 31 000.00 10 25/06/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 25 000.00 11 04/07/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 24 000.00 12 09/07/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 1 600.00 13 11/07/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 10 950.00 14 15/07/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 32 000.00 15 22/07/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 1 250.00 16 06/08/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 25 000.00 17 07/08/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 11 000.00 8 18 19/08/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 31 000.00 19 12/09/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 35 000.00 20 25/09/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 31 000.00 21 01/10/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 62 000.00 22 16/10/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 24 000.00 23 30/10/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 41 650.00 24 13/11/2003 BANK TRANSFER 1/99 M/S. ESSEN AGENCIES A/C NO. 095124 34 700.00 25 03/12/2003 BANK TRANSFER 1/99 M/S. ESSEN OIL INDUSTRIES. A/C NO. 095124 30 000.00 TOTAL 6 56 210.00 15. THE AMOUNT SO WITHDRAWN IN THE MANNER SHOWN ABOVE WERE INVESTED IN ESSEN TRADING COMPANY AND THE CURRENT ACCOUNT OF THE ASSESSEE IN THE FIRM WAS CREDITED FOR THE AMOUNT ACTUALLY INVESTED. ALL THESE TRANSACTIONS WERE MADE THROUGH BANK TRANSFERS AND MUCH BEFORE THE DATE OF SEARCH. THE DETAILS OF THESE TRANSACTIONS WERE ALREADY FURNISHED TO THE D EPARTMENT AT THE TIME OF ASSESSMENT ITSELF. 16. THE COPY OF THE BANK STATEMENT OF THE ASSESSEE WITH CATHOLIC SYRIAN BANK IS PROVIDED IN ANNEXURE B (PAGE NO. 21 TO 23) OF WRITTEN SUBMISSIONS FIL E D BEFORE THE INCOME TAX APPELLATE TRIBUNAL FOR A.Y. 2004 - 05. THUS IT COULD BE FOUND THAT THE AMOUNTS AVAILABLE WITH THE BANK IN THE NAME OF ESSEN OIL INDUSTRIES AND ESSEN AGENCIES WERE WITHDRAWN BY THE ASSESSEE FOR MAKING INVESTMENTS IN ESSEN TRADING COMPA NY. THE ASSESSING OFFICER SHOULD HAVE ACCEPTED THIS CREDIT AND THE RESULTANT AVAILABLE FUNDS AS GENUINE. 17. THE ASSESSEE HAS FURNISHED THE S A LES TAX REGISTRATION NUMBER OF THE FIRM M/S. ESSEN OIL INDUSTR IE S AND THIS F A CT IS SPECIFICALLY MENTIONED IN THE ORDER OF THE HONBLE COMMISSIONER OF INCOME TAX (APPEALS). HENCE THE 9 CONTENTION THAT THE ASSESSEE DID NOT PRODUCE THE REQUIRED EVIDENCES TO PROVE THE EXISTENCE OF THE FIRM IS NOT CORRECT. THE COPY OF THE ORDER ISSUED BY THE DEPUTY COMMISSIONER (APPEALS) - I ERNAKULAM COMMERCIAL TAXES DEPARTMENT IN RESPECT OF THE ASSESSMENT YEAR 2003 - 03 WAS PROVIDED IN ANNEXURE C (PAGE NO. 24 TO 28) OF WRITTEN SUBMISSION FILED BEFORE US FOR A.Y. 2004 - 05 TO PROVE THE EXISTENCE AND GENUINENESS OF THE FIRM. 18. CONFIRMATION FROM CATHOLIC SYRIAN BANK ANNAMANDA BRANCH TO THE EFFECT THAT THE CREDIT SIN THE BANK ACCOUNT IN THE NAME OF THE ASSESSEE WERE MADE BY WAY OF BANK TRANSFER FROM THE CURRENT/OVERDRAFT ACCOUNT IN THE NAME OF ESSEN OIL INDUSTRIES AND ESSEN AGENCIES IS ATTACH ED AS ANNEXURE - A. THE FOLLOWING DOCUMENTS HAVE ALREADY BEEN PLACED ON RECORD : - ( A ) COPY OF THE BANK STATEMENT WITH CATHOLIC SYRIAN BANK (ACCOUNT NO. 095124) IN THE NAME OF E.N. GOPAKUMAR THE ASSESSEE FOR THE PERIOD FROM 01 - 04 - 2003 TO 31 - 03 - 2004 IN ANNEXURE B (PAGE NO. 21 TO 23) OF THE WRITTEN SUBMISSION FILED BEFORE THE HONBLE INCOME TAX APPELLATE TRIBUNAL FOR A.Y. 2004 - 05. ( B ) COPY OF THE ORDER IN RESPECT OF THE ASSESSMENT YEAR 2002 - 03 IN RESPECT OF ESSEN OIL INDUSTRIES ISSUED BY DEPUTY COMMISSIONER (APPEALS) - I ERNAKULAM KERALA COMMERCIAL TAXES DEPARTMENT IN ANNEXURE C (PAGE NO. 24 TO 28) OF WRITTEN SUBMISSION FILED BEFORE THE HONBLE INCOME TAX APPELLATE TRIBUNAL FOR A.Y. 2004 - 05. ( C ) THE FOLLOWING DOCUMENTS WERE ALSO PLACED ON RECORD IN PAPER BOOK NO. II. SL. NO. ANNEXURE NO. CONTENTS OF THE ANNEXURE PAGE NO. FROM TO 1 ANNEXURE A - 1 COPY OF THE CONFIRMATION FORM CATHOLIC SYRIAN 1 3 10 BANK ANNAMANADA BRANCH TO THE EFFECT THAT THE CREDITS IN THE BANK ACCOUNT IN THE NAME OF THE ASSESSEE WERE MADE BY WAY OF BANK TRANSFER FROM CURRENT/OVERDRAFT ACCOUNT IN THE NAME OF ESSEN OIL INDUSTRIES AND ESSEN AGENCIES. 2 ANNEXURE A - 2 COPY OF THE BANK STATEMENT OF THE ASSESSEE WITH CATHOLIC SYRIAN BANK. 4 7 3 ANNEXURE A - 3 COPY OF THE ORDER ISSUED BY THE DEPUTY COMMISSION E R (APP E ALS) - I ERNAKULAM COMMERCIAL TAXES DEP A RTMENT IN RESPECT OF ESSEN OIL INDUSTRIES FOR THE A.Y. 2002 - 03. 8 12 19. THE ASSESSING OFFICER SHOULD HAVE VERIFIED THESE DOCUMENTS AND ACCEPTED THE GENUINENESS OF THE CLAIM OF THE ASSESSEE FOR THE SOURCE OF RS. 6 56 210/ - . 20. THE ASSESSING OFFICER ERRED IN NOT ACCEPTING THE EXPLANATION OF THE ASSESSEE FOR THE SOURCE OF RECEIPT OF THE SUM OF RS. 6 56 210/ - BEING THE WITHDRAWAL FROM THE FIRM M/S. ESSEN OIL INDUSTRIES AND ESSEN AGENCIES. 21. UNDER THE CIRCUMSTANCES AND FACTS OF PRESENT CASE THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) CORRECTLY DELETED THE ADDITION OF RS. 2 00 000/ - ON THE BASIS OF DOCUMENTARY EVIDENCES AND WE FIND NO INFIRMITY IN HIS ORDER. ACCORDINGLY ISSUE OF REVENUE IS DISMISSED. ISSUE NO. 2 NOT ACCEPTING AS CASH AVAILABLE IN THE TRANSPORT BUSINESS AGAINST NON C ASH EXPENSES / DEDUCTION BEING DEDUCTION TOWARDS DEPRECIATION ON VEHICLES TAKEN INTO CONSIDERATION IN THE COMPUTATION OF TAXABLE INCOME IN RESPECT OF TRANSPORT BUSINESS WHICH IS TO BE TREATED AS AVAILABLE CASH AND CASH EQUIVALENTS IN THE CASH FLOW STATEME NT 11 PARTICUL A RS OF THE MOUNTS IN RESPECT OF EACH ASSESSMENT YEAR ARE MENTIONED BELOW : A.Y. AMOUNT 2004 - 05 8 93 556.00 2005 - 06 7 36 260.00 2006 - 07 5 25 948.00 2007 - 08 4 67145.00 2008 - 09 3 94 875.00 2009 - 10 9 83 887.00 2010 - 11 10 81 787.00 TOTAL 50 83 458.00 22. THE SOURCE FOR THE AVAILABILITY OF CASH FOR AN AMOUNT OF RS. 50 83 458/ - BEING THE DEPRECIATION IN RESPECT OF THE VARIOUS VEHICLES USED FOR THE TRANSPORT BUSINESS AND ALLOWED AS DEDUCTION IN THE COMPUTATION OF TAXABLE INCOME WITH REGARD TO TRANSPORT BUSINESS IN THE ASSESSMENT FOR THE YEARS 2004 - 05 TO 2010 - 11 WAS NOT ACCEPTED BY THE ASSESSING OFFICER. THE ASSESSEE OFFERED PRESUMPTIVE INCOMES FOR THE TRANSPORT BUSINESS IN RESPECT OF VEHICLES FOR THE RESPECTIVE ASSESSMENT YEARS IN ACCORDAN CE WITH THE FORMULA PRESCRIBE DIN SEC 44AE OF THE ACT. 23. THE ASSESSEE HAD TAKEN LOANS FROM BANKS AND FINANCIAL INSTITUTIONS FOR THE PURCHASE OF VEHICLES USED FOR TRANSPORT BUSINESS. THE PAYMENT OF INTEREST AND REPAYMENT OF THE PRINCIPAL AGAINST THE VARIOUS LOANS ARE MADE OUT OF THE COLLECTIONS FROM THE OPERATION OF THE VEHICLES. 24. IT IS TRUE THAT THE ASSESSEE DID NO T MAINTAIN BOOKS OF ACCOUNT AND FOR T HIS REASON AVAILED THE OPTION PROVIDED UNDER SECTI O N 44AE OF THE ACT TO 12 OFFER INCOME FOR ASSESSMENT ON PRESUMPTIVE BASIS. NORMALLY ASSESSMENTS ARE COMPLETED BY ACCEPTING THE INCOME OFFERED ON PRESUMPTIVE BASIS AS PER THE METHOD PRESCRIBED UNDER SECTION 44 AE OF THE ACT. 25. HOWEVER FOR THE PURPOSE OF ASSESSMENT TO BE AMDE UNDER THE PROVISIONS APPLICABLE TO SEARCH AND SEIZURE OPERATIONS THE ASSESSING OFFICER DIRECTED THE ASSESSEE TO FURNISH A CASH FLOW STATEMENT FOR EACH ASSESSMENT Y E AR FROM A.Y. 2004 - 05 TO A.Y. 2010 - 11. SO IN THE CASH FLOW STATEMENT IT BECAME NECESSARY TO SHOW THE NET EFFECT OF THE TRANSACTIONS IN THE TRANSPORT BUSINESS AND DETERMINE THE NET INFLOW OF FUNDS FROM THE OPERATIONS OF THE VEHICLES. 26. AS EXPLAINED ABO VE THESE PAYMENTS WERE MADE ONLY OUT OF THE COLLECTION FROM THE OP E RATIONS OF THE VEHICLES. SO TO DETERMINED THE NET AVAILABILITY OF CASH TO MAKE REPAYMENTS OF THE LOAN AND THE MARGIN MONEY FOR THE NEW VEHICLES PURCHASED THE NON CASH EXPENDITURE DEDUCTED FOR THE PURPOSE OF DETERMINING THE TAXABLE INCOME SHOULD BE ADDED BACK TO THE TAXABLE INCOME OFFERED OF DETERMINING THE TAXABLE INCOME SHOULD BE ADDED BACK TO THE TAXABLE INCOME OFFERED FOR ASSESSMENT. THIS IS NO ON ACCOUNT OF THE FACT TH A T THE INCOME UN DER THE PRESUMPTIVE BASIS IS DETERMINED AT THE SPECIFIC RATES AFTER TAKING INTO CONSIDERATION ALL ALLOWANCES INCLUDING NON CASH ALLOWANCES SUCH AS DEPRECIATION. THE NET INCOME AGAINST THE T R ANSPORT BUSINESS FOR DIFFERENT Y E ARS IS COMPUTED AFTER TAKING INTO CONSIDERATION THE DEPRECIATION FOR AN AGGREGATE AMOUNT OF RS. 50 83 458/ - . 27. CONSEQUENTLY DEPRECIATION OF RS. 50 83 458/ - ALLOWABLE IN RESPECT OF THE VEHICLES SHOULD BE ALLOWED AS AN AVAILABLE SOU R CE FOR MAKING 13 REPAYMENTS OF THE LOAN AND PROVIDING MARG IN MONEY FOR THE NEW VEHICLES PURCHASED. 28. FOR THE REASONS STATED ABOVE THE ASSESSING OFFICER SHOULD HAVE ALLOWED THE SUM OF RS. 50 83 458/ - AS AVAILABLE FUNDS IN THE CASH FLOW STATEMENT BEING THE DEPRECIATION ALLOWABLE FOR THE VEHICLES. 29. STATEM ENTS SHOWING THE COMPUTATION OF DEPRECIATION FOR EACH ASSESSMENT YEAR I.E. FROM A.Y. 2004 - 05 TO A.Y. 2010 - 11 WERE PLACED BEFORE BOTH THE AUTHORITIES BELOW AND BEFORE US. 30. IN THE FOLLOWING ANNEXURES OF RESPECTIVE WRITTEN SUBMISSION FOR DIFFERENT YEARS FILED BEFORE THE INCOME TAX APPELLATE TRIBUNAL : 1. ANNEXURE D (PAGE NO. 29 TO 30) OF WRITTEN SUBMISSIONS FILED FOR A.Y. 2004 - 05. 2. ANNEXURE B (PAGE NO. 16 TO 17) OF WRITTEN SUBMISSIONS FILED FOR A.Y. 2005 - 06. 3. ANNEXURE B (PAGE NO. 15 TO 16 ) OF WRIT TEN SUBMISSIONS FILED FOR A.Y. 200 6 - 0 7 . 4. ANNEXURE B (PAGE NO. 2 2 TO 23 ) OF WRITTEN SUBMISSIONS FILED FOR A.Y. 200 7 - 0 8 . 5. ANNEXURE B (PAGE NO. 21 TO 22) OF WRITTEN SUBMISSIONS FILED FOR A.Y. 2008 - 09. 6. ANNEXURE B (PAGE NO. 2 3 TO 24 ) OF WRITTEN SUBMISSIONS FILED FOR A.Y. 200 9 - 10 . 7. ANNEXURE B (PAGE NO. 1 9 TO 2 0) OF WRITTEN SUBMISSIONS FILED FOR A.Y. 20 10 - 11 . 14 THE FOLLOWING DOCUMENTS ARE ENCLOSED FOR THE IMMEDIATE REFERENCE IN PAPER BOOK NO. II SL. NO. ANNEXURE NO. CONTENTS OF THE ANNEXURE PAGE NO. FROM TO 1 ANNEXURE B - 1 STATEMENT SHOWING THE COMPUTATION OF DEPRECIATION FOR THE ASSESSMENT YEAR 2004 - 05 13 14 2 ANNEXURE B - 2 STATEMENT SHOWING THE COMPUTATION OF DEPRECIATION FOR THE ASSESSMENT YEAR 2005 - 06 15 16 3 ANNEXURE B - 3 STATEMENT SHOWING THE COMPUTATION OF DEPRECIATION FOR THE ASSESSMENT YEAR 2006 - 07 17 18 4 ANNEXURE B - 4 STATEMENT SHOWING THE COMPUTATION OF DEPRECIATION FOR THE ASSESSMENT YEAR 2007 - 08 19 20 5 ANNEXURE B - 5 STATEMENT SHOWING THE COMPUTATION OF DEPRECIATION FOR THE ASSESSMENT YEAR 2008 - 09 21 22 6 ANNEXURE B - 6 STATEMENT SHOWING THE COMPUTATION OF DEPRECIATION FOR THE ASSESSMENT YEAR 2009 - 10 23 24 7 ANNEXURE B - 7 STATEMENT SHOWING THE COMPUTATION OF DEPRECIATION FOR THE ASSESSMENT YEAR 2010 - 11 25 26 31. IN THE CIRCUMSTANCES AND FACTS OF THE CASE WE FIND NO INFIRMITY IN THE ORDER OF LD. CIT(A). THUS ISSUE BY REVENUE IS DISMISSED. ISSUE NO. 3 REJECTION OF THE TREATMENT ADOPTED BY THE ASSESSEE IN RESPECT OF SHARE OF PROFIT FROM ESSEN TRADING CO. A FIRM IN WHICH THE ASSESSEE SHRI E N GOPAKUMAR IS A PARTNER SHOWN AS CONTRA ITEMS AS INFLOW AND OUTFLOW IN THE CASH FLOW STATEMENT. 32. PARTICULAR OF THE AMOUNT S IN RESPECT OF EACH ASSESSMENT YEAR ARE MENTIONED BELOW : - A.Y. AMOUNT 2004 - 05 25 712.00 2005 - 06 105945.00 2006 - 07 7276.00 2007 - 08 141489.00 15 2008 - 09 349378.00 2009 - 10 285062.00 2010 - 11 634132.00 TOTAL 1548994.00 33. THIS IS NOT A CASH RECEIPT. IT WAS ARGUED THAT THE TOTAL OF THE AMOUNTS SHOWN UNDER FOUR ITEMS IN THE CASH FLOW STATEMENT FOR EACH YEAR IS EXACTLY EQUAL TO THE WITHDRAWAL FROM THE FIRM ESSEN TRADING COMPANY. 34. PARTICULAR S OF THE INFLOW OF FUNDS (KINDLY REFER PAGE 2 OF THE ASSESSMENT ORDER FOR A.Y. 2004 - 05) FROM ESSEN TRADING COMPANY UNDER FOUR ITEMS IN RELATION TO THE ASSESSMENT YEAR 2004 - 05 ARE GIVEN BELOW BY WAY OF ILLUSTRATION. 35. THE SUMMARY OF THE CURRENT ACCOUNT OF THE ASSESSEE IN THE FIRM WAS GIVEN AS UNDER : - SL. NO. PARTICULARS AMOUNT IN RS. AMOUNT RS. 1 OPENING BALANCE AS ON 01.04.2003 0.00 2 SHARE OF PROFIT FOR THE YEAR 25712.88 3 REMUNERATION AS WORKING PARTNER 300000.00 4 INTEREST ON THE BALANCE IN THE CAPITAL AND CURRENT ACCOUNT 16860.00 5 TOTAL OF 1 TO 5 ABOVE 342572.88 6 WITHDRAWALS DURING THE YEAR 920029.00 LESS : ADDITIONS DURING THE YEAR (281000.00) LESS : CREDITS AGAINST EXPENSES OF THE FIRM (9269.00) 629760.00 7 CLOSING BALANCE AS AT THE END OF THE YEAR 31 - 0 - 2014 (DR.) 287187.12 36. THE NET WITHDRAWALS OF RS. 6 29 760/ - WAS REFLECTED AND SHOWN IN THE CASH FLOW STATEMENT AS UNDER: - 16 SL. NO. PARTICUL A RS AMOUNT (IN RS.) 1 NET DECREASE IN THE CAPITAL AND CURRENT ACCOUNT. 287187.12 2 INTEREST ON CAPITAL AND CURRENT ACCOUNT FROM THE FIRM. 16860.00 3 REMUNERATION FROM THE FIRM 300000.00 4 SHARE OF PROFIT FROM THE FIRM 25712.88 TOTAL 629760.00 37. IT WAS ARGUED THAT THIS ACTUALLY REPRESENTS THE SHARE OF PROFIT OF THE ASSESSEE FROM ESSEN TRADING CO. THE ASSESSEE HAD SHOWN ALSO CONTRA ITEMS EXACTLY THE SAME AMOUNT AS AN INVESTMENT IN ESSEN TRADING CO. BOTH AS INFLOW AND OUTFLOW OF FUNDS. THIS IS ONL Y A CONTRA ITEM APPEARING BOTH AS SOU R CE OF RECEIPT AND APPLICATION OF FUNDS. 38. AS STATED ABOVE THE SHARE OF PROFIT OF A PARTNER IN A FIRM IS CREDITED TO HIS CURRENT ACCOUNT AT THE END OF THE YEAR AND TO THE EFFECT HIS INVESTMENT IN THE FIRM IS REFLEC TED BY AN INCREASE IN HIS CURRENT ACCOUNT OF THE FIRM. THE SHARE OF NET PROFIT OF THE FIRM BEING THE EXCESS OF INCOME OVER EXPENSES AS PER THE PROFIT AND LOSS ACCOUNT IS TRANSFERRED TO THE CURRENT ACCOUNT OF THE PARTNER IN THE PROFIT SHARING RATIO AT THE END OF EACH YEAR. THIS IS NOT A CREDIT BY WAY OF ADDITIONAL CAPITAL BROUGHT IN BY WAY OF CASH. 39. THE ASSESSING OFFICER SHOULD NOT HAVE TAKEN THE NON CASH ITEM REPRESENTED BY THE SHARE OF PROFIT IN THE FIRMA S UNEXPLAINED CASH CREDIT/UNEXPLAINED INVESTMENT. 17 40. THE COPY OF THE CURRENT ACCOUNT OF THE ASSESSEE IN THE FIRM M/S. ESSEN TRADING CO. IS ENCL OSED IN THE ANNEXURES OF RESPECTIVE WRITTEN SUBMISSION FIELD BEFORE THE HONBLE INCOME TAX APPELLATE TRIBUNAL FOR IMMEDIATE REFERENCE AS PER DETAILS SHOWN BELOW : 1. ANNEXURE E (PAGE NO. 31 TO 32) OF WRITTEN SUBMISSION FIELD FOR A.Y. 2004 - 05. 2 . ANNEXURE C (PAGE NO. 1 8 TO 2 2) OF WRITTEN SUBMISSION FIELD FOR A.Y. 200 5 - 0 6 . 3. ANNEXURE C (PAGE NO. 17 TO 21) OF WRITTEN SUBMISSION FIELD FOR A.Y. 2006 - 07. 4. ANNEXURE C (PAGE NO. 24 TO 2 8 ) OF WRITTEN SUBMISSION FIELD FOR A.Y. 200 7 - 0 8 . 5. ANNEXURE C (PAGE NO. 2 3 TO 2 7 ) OF WRITTEN SUBMISSION FIELD FOR A.Y. 200 8 - 0 9 . 6. ANNEXURE C (PAGE NO. 25 TO 29) OF WRITTEN SUBMISSION FIELD FOR A.Y. 2009 - 10. 7. ANNEXURE C (PAGE NO. 21 TO 25) OF WRITTEN SUBMISSION FIELD FOR A.Y. 2010 - 11. 41. THE BALANCE SHEETS OF THE FIRM AS AT THE END OF EACH OF THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEARS 2004 - 05 TO 2010 - 11 ARE FURNISHED IN THE FOLLOWING ANNEXURES OF RESPECTIVE WRITTEN SUBMISSION FIELD BEFORE US. 1. ANNEXURE F (PAGE NO. 33 TO 50) OF WRITTEN SUBMISSION FIELD FOR A.Y. 2004 - 05 . 2. ANNEXURE D (PAGE NO. 23 TO 40 ) OF WRITTEN SUBMISSION FIELD FOR A.Y. 2005 - 06. 3. ANNEXURE D (PAGE NO. 22 TO 43 ) OF WRITTEN SUBMISSION FIELD FOR A.Y. 2006 - 07. 18 4. ANNEXURE D (PAGE NO. 2 9 TO 52 ) OF WRITTEN SUBMISSION FIELD FOR A.Y. 2007 - 08. 5. ANNEXURE D (PAGE NO. 2 8 TO 46 ) OF WRITTEN SUBMISSION FIELD FOR A.Y. 2008 - 09. 6. ANNEXURE D (PAGE NO. 30 TO 50 ) OF WRITTEN SUBMISSION FIELD FOR A.Y. 2009 - 10. 7. ANNEXURE D (PAGE NO. 2 6 TO 5 0 ) OF WRITTEN SUBMISSION FIELD FOR A.Y. 2010 - 11. 42. FOR THE ABOVE REASON TH E AGGREGATE ADDITION OF RS. 15 48 994/ - MADE BY THE ASSESSING AUTHORITY IN THIS ITEM WAS NOT CORRECT. 43. THE FOLLOWING DOCUMENTS WERE FIELD FOR THE REFERENCE IN PAPER BOOK NO. II . SL. NO. ANNEXURE NO. A.Y. CONTENTS OF THE ANNEXURE PAGE NO. 1 ANNEXURE C - 1 2004 - 05 STATEMENT SHOWING THE SUMMARY OF THE CURRENT ACCOUNT OF THE ASSESSING IN THE FIRM ESSEN TRADING CO. FOR THE FY 2003 - 04. 27 28 2 ANNEXURE C - 2 2005 - 06 STATEMENT SHOWING THE SUMMARY OF THE CURRENT ACCOUNT OF THE ASSESSING IN THE FIRM ESSEN TRADING CO. FOR THE FY 200 4 - 0 5 . 29 30 3 ANNEXURE C - 3 2006 - 07 STATEMENT SHOWING THE SUMMARY OF THE CURRENT ACCOUNT OF THE ASSESSING IN THE FIRM ESSEN TRADING CO. FOR THE FY 200 5 - 0 6 . 31 32 4 ANNEXURE C - 4 2007 - 08 STATEMENT SHOWING THE SUMMARY OF THE CURRENT ACCOUNT OF THE ASSESSING IN THE FIRM ESSEN TRADING CO. FOR THE FY 200 6 - 07 . 33 34 5 ANNEXURE C - 5 2008 - 09 STATEMENT SHOWING THE SUMMARY OF THE CURRENT ACCOUNT OF THE ASSESSING IN THE FIRM ESSEN TRADING CO. FOR THE FY 200 7 - 0 8 . 35 37 6 ANNEXURE C - 6 2009 - 10 STATEMENT SHOWING THE SUMMARY OF THE CURRENT ACCOUNT OF THE ASSESSING IN THE FIRM ESSEN TRADING CO. FOR THE FY 200 8 - 0 9 . 38 40 7 ANNEXURE C - 7 2010 - 11 STATEMENT SHOWING THE SUMMARY OF THE CURRENT ACCOUNT OF THE ASSESSING IN THE FIRM ESSEN TRADING CO. FOR THE FY 200 9 - 10 . 41 42 8 ANNEXURE C - 8 2004 - 05 COPY OF THE CURRENT ACCOUNT OF THE ASSESSEE IN THE FIRM ESSEN TRADING CO. FOR THE FY 2003 - 04 43 44 9 ANNEXURE C - 9 2004 - 05 FINANCIAL STATEMENT OF THE FIRM ESSEN TRADING CO. FOR THE YEAR ENDED 31 - 03 - 2004. 45 62 10 ANNEXURE C - 10 200 5 - 0 6 COPY OF THE CURRENT ACCOUNT OF THE ASSESSEE 63 67 19 IN THE FIRM ESSEN TRADING CO. FOR THE FY 2004 - 05 11 ANNEXURE C - 11 200 5 - 0 6 FINANCIAL STATEMENT OF THE FIRM ESSEN TRADING CO. FOR THE YEAR ENDED 31 - 03 - 2005. 68 85 12 ANNEXURE C - 12 200 6 - 0 7 COPY OF THE CURRENT ACCOUNT OF THE ASSESSEE IN THE FIRM ESSEN TRADING CO. FOR THE FY 2005 - 06 86 90 13 ANNEXURE C - 13 200 6 - 0 7 FINANCIAL STATEMENT OF THE FIRM ESSEN TRADING CO. FOR THE YEAR ENDED 31 - 03 - 2006 91 112 14 ANNEXURE C - 14 200 7 - 08 COPY OF THE CURRENT ACCOUNT OF THE ASSESSEE IN THE FIRM ESSEN TRADING CO. FOR THE FY 2006 - 07 113 118 15 ANNEXURE C - 15 2007 - 08 FINANCIAL STATEMENT OF THE FIRM ESSEN TRADING CO FOR THE YEAR ENDED 31 - 03 - 2007 119 142 16 ANNEXURE C - 16 2008 - 09 COPY OF THE CURRENT ACCOUNT OF THE ASSESSEE IN THE FIRM ESSEN TRADING CO FOR THE FY 2007 - 08 143 147 17 ANNEXURE C - 17 2008 - 09 FINANCIAL STATEMENT OF THE FIRM ESSEN TRADING CO FOR THE YEAR ENDED 31 - 03 - 2008 148 166 18 ANNEXURE C - 18 2009 - 10 COPY OF THE CURRENT ACCOUNT OF THE ASSESSEE IN THE FIRM ESSEN TRADING CO. FOR THE FY 2008 - 09 167 171 19 ANNEXURE C - 19 2009 - 10 FINANCIAL STATEMENT OF THE FIRM ESSEN TRADING CO FOR THE YEAR ENDED 31 - 03 - 2009 172 192 20 ANNEXURE C - 20 2010 - 11 COPY OF THE CURRENT ACCOUNT OF THE ASSESSEE IN THE FIRM ESSEN TRADING CO FOR THE FY 2009 - 10 193 197 21 ANNEXURE C - 21 2010 - 11 FINANCIAL STATEMENT OF THE FIRM ESSEN TRADING CO FOR THE YEAR ENDED 31 - 03 - 2010. 198 221 44. ACCORDINGLY IN THE CIRCUMSTANCES AND FACTS OF THE CASE WE FIND NO INFIRMITY IN THE ORDER OF LD. CIT(A). THUS ISSUE RAISED BY REVENUE IS DISMISSED. ISSUE NO. 4 NOT ACCEPTING THE SOURCE OF THE FUNDS IN THE CASH FLOW STATEMENTS AGAINST THE TRADE ADVANCE R ECEIVED FROM THE CUSTOMER MR. AKBAR HYDROSE TOWARDS SALE OF LAND 45. THE DETAILS OF ADDITION MADE ARE STATED TO BE AS UNDER: - AY AMOUNT 2007 - 08 2500000.00 TOTAL 2500000.00 20 46. MR. AKBAR HYDROSE A CUSTOMER APPROACHED THE ASSESSEE IN CONNECTION WITH PURCHASE OF LAND WITH AN EXTENT OF62 CENTS SITUATED IN SURVEY NO. 6248 OF KARIYAD VILLAGE ALUVA ERNAKULAM. HE IS A NATIVE OF MALA THRISSUR. ACCORDINGLY THE ASSESSEE RECEIVED AN A MOUNT OF RS. 25 00 000/ - WAS ADVANCE AGAINST SALE OF LAND TO SHRI AKBAR HYDROSE DURING THE YEAR 2006 - 07. THE TRANSACTION DID NOT FRUCTIFY DUE TO CERTAIN LEGAL DEFECTS TO THE TITLE OF THE PROPERTY AND HENCE THE ASSESSEE REFUNDED THE ADVANCE TO MR. AKBAR HYD ROSE DURING THE FINANCIAL YEAR 2007 - 08. THIS REFUND IS SHOWN AS AN OUTFLOW OF FUNDS IN THE CASH FLOW STATEMENT FOR THE SUBSEQUENT FINANCIAL YEAR 2007 - 08 . 47. THE ASSESSEE ALSO FURNISHED CONFIRMATION LETTER RECEIVED FROM SHRI AKBAR HYDROSE BEFORE THE ASSESSING AUTHORITY CONFIRMING THE AMOUNT OF RS. 25 00 000/ - GIVEN TO THE ASSESSEE. 48. COPY OF THE CONFIRMATION LETTER AND COPY OF NOTARIZED DOCUMENT DATED 25/10 /2007 IN SUPPORT OF THE CANCELLATION OF THE AGREEMENT AND THE CONSEQUENT REPAYMENT OF THE ADVANCE OF RS. 25 00 000/ - WAS PROVIDED IN ANNEXURE - E (PAGE NO. 53 TO 55) AND ANNEXURE F (PAGE NO. 56 TO 57) OF THE WRITTEN SUBMISSION FILED BEFORE US. 49. THE ASSE SSING OFFICER WENT WRONG IN NOT ACCEPTING THE ADVANCE OF RS. 25 00 000/ - RECEIVED FROM SHRI AKBAR HYDROSE DURING THE FINANCIAL YEAR 2006 - 07 AS AVAILABLE CASH IN THE CASH FLOW STATEMENT. 50. THE ASSESSING OFFICER STATED THE FOLLOWING REASONS FOR REJECTING THE CLAIM OF CREDIT. (A) THE TRANSACTION IS IN CASH. 21 (B)THE IDENTITY OF THE CREDITOR IS NOT ESTABLISHED. (C) CREDITWORTHINESS OF THE CREDITOR IS NOT ESTABLISHED. 51. ALL THE THREE REASONS STATED BY THE ASSESSING OFFICER ARE WRONG AND AGAINST FACTS AS ARGUED BY LD. AR. 52. THIS AMOUNT OF RS. 25 00 000/ - WAS RECEIVED AS ADVANCE AGAINST THE VALUE OF THE PROPERTIES AGREED TO BE SOLD AND HENCE PAYMENT BY CASH WAS PERMITTED. FURTHER THE COPY OF THE AGREEMENT WAS SEIZED BY THE DEPARTMENT AT THE TIME OF SEARCH. THIS CLEARLY PROVED THAT THE TRANSACTION CLAIMED BY THE ASSESSEE WAS GENUINE. THE A S SESSING OFFICER FURTHER FAIL E D TO NOTE THAT SHRI AKBAR HYDROSE H A D ACTUALLY CONFIRMED THE FACT THAT AN AMOUNT OF RS. 25 00 000/ - HAD BEEN GIVEN TO THE ASSESSEE. 5 3. THE NATURE OF RELATIONSHIP WAS CLEARLY EXPLAINED. THE CREDITOR GAVE MONEY TO THE ASSESSEE AS ADVANCE AGAINST PURCHASE OF LAND AT KARIYAD ANGAMALY ATTANI. THE FULL POSTAL ADDRESS AND OTHER PARTICULARS OF THE CREDITOR ARE AVAILABLE. THE ASSESSING OFFICE R DID NO T ASK FOR ANY FURTHER DETAILS OR EVIDENCE AFTER EXAMINING THE CONFIRMATION LETTER FURNISHED BY THE ASSESSEE. 54. SHRI AKBAY HYDROSE RECEIVED AN AMOUNT OF RS. 25 00 000/ - FROM HIS SISTER DR. SARA UMMA. SHE IS A DOCTOR WORKING IN DUBAI AND IS EARNING AN ANNUAL INCOME OF MORE THAN RS. 36 00 000/ - THE AMOUNT IN QUESTION I.E. RS. 25 00 000/ - HAD BEEN PAID OUT OF THE RECEIPT FROM HIS SISTER BY WAY OF A BANK TRANSFER FROM ICICI BANK KUNNAKULAM AND SBT KORATTY. 22 55. THE CREDITOR CONFIRMED THE FACT THAT AN AMOUNT OF RS. 25 00 000/ - HAS BEEN GIVEN TO THE ASSESSEE AS PER HIS CONFIRMATION LETTER. COPY OF THE CONFIRMATION LETTER AND COPY OF THE NOTARIZED DOCUMENT IN SUPPORT OF REPAYMENT WAS PROVIDED FOR REFERENCE IN ANNEXURE E (PAGE 53 TO 55) AND ANNEXUR E F (PAGE 56 TO 57) OF WRITTEN SUBMISSION FILED BEFORE US FOR A.Y. 2007 - 08. 56. THUS THE ASSESSEE HAD DISCHARGED HIS PRIMARY RESPONSIBILITY AS PRESCRIBED UNDER SECTION 68 OF THE INCOME TAX ACT WITH REGARD TO THE SUM OF RS. 25 00 000/ - RECEIVED DURING THE YEAR FROM SHRI AKBAR HYDROSE. AT THE TIME OF THE ASSESSMENT PROCEEDINGS THE AUTHORITY DID NOT ASK FOR ANY FURTHER DETAILS OR EVIDENCES. 57. THE CONDITIONS TO BE FULFILLED WITH REGARD TO THE LOAN CREDITS AS DETAILED BELOW HAVE BEEN FULLY DISCHARGED IN T HIS CASE : (A) THE IDENTITY OF THE CREDITOR VIS - A - VIS SHRI AKBAR HYDROSE WITH FULL ADDRESS HAS BEEN FULLY ESTABLISHED BY FURNISHING CONFIRMATION LETTERS BEFORE THE ASSESSING AUTHORITY SHRI AKBAR HYDROSE IS A NATIVE OF MALA THRISSUR. 9B) THE CREDITWORTHINESS OF THE CREDITOR IS ESTABLISHED BY CONFIRMING THAT SHRI AKBAR HYDROSE RECEIVED AN AMOUNT OF RS. 25 00 000/ - FROM HI S SISTER DR. SARA UMMA. SHE IS A DOCTOR BASED IN DUBAI EARNING AN ANNUAL INCOME OF MORE THAN RS. 36 00 000/ - . THE AMOUNT IN Q UESTION I.E. RS. 25 00 000/ - HAD BEEN PAID OUT OF THE RECEIPT FROM HIS SISTER AS A BANK TRANSFER FORM ICICI BANK KU NNAMKULAM AND SBT KORATTY. ( D ) GENUINENESS OF THE TRANSACTION WAS ALSO PROVED WITH THE CONFIRMATION LETTER FROM THE CREDITOR. THE SEIZED DOCUM ENTS 23 INCLUDE THE NOTARIZED RECEIPT OF THE AMOUNT REFUNDED TO THE CREDITOR. 58. THUS THE ASSESSEE HAD FULFILLED THE THREE CONDITIONS PRESCRIBED UNDER THE ACT AND LAID DOWN IN SEVERAL JUDGMENTS AND JUDICIAL PRONOUNCEMENTS TO ESTABLISH A CREDIT BEING THE ADVANCE OF RS. 25 00 000/ - RECEIVED FROM A CUSTOMER MR. AKBAR HYDROSE. THE ASSESSING OFFICER DID NOT ASK FOR ANY FURTHER DETAILS OR PARTICULARS FROM THE ASSESSEE ON RECEIPT OF THESE EVIDENCES. 59. THE FOLLOWING DOCUMENTS WERE PLACED ON RECORD REFERENCE IN PAPER BOOK NO. II. SL. NO. ANNEXURE NO. CONTENTS OF THE ANNEXURE PAGE NO. FROM TO 1 ANNEXURE D - 1 COPY OF THE CONFIRMATION LETTER RECEIVED FROM SHRI AKBAR HYDROSE. 222 224 2 ANNEXURE D - 2 COPY OF THE NOTARIZED DOCUMENT IN SUPPORT OF THE AGREEMENT AND THE CONSEQUENT REPAYMENT OF THE ADVANCE. 225 226 3 ANNEXURE D - 3 ENGLISH TRANSLATION OF THE NOTARIZED DOCUMENT 227 228 60. CONSEQUENTLY THE ASSESSING OFFICER WAS ERRED IN NOT ACCEPTING THE SOURCE OF THE CREDIT FOR THE SUM OF RS. 25 00 000/ - SHOWN IN THE CASH FLOW STATEMENT AGAINST THE TRADE ADVANCE RECEIVED FROM THE CUSTOMER SHRI AKBAR HYDROSE. 61. IN VIEW OF THE ABOVE THE CREDIT OF RS. 25 00 000/ FROM AKBA R HYDROSE WAS RIGHTLY ACCEPTED BY LD.CIT(A). WE FIND NO INFIRMITY IN HIS ORDER. THUS ISSUE RAISED BY REVENUE IS DISMISSED. 24 ISSUE NO. 5: NOT ACCEPTING THE SOU R CE OF FUNDS IN THE CASH FLOW STATEMENT AGAINST THE AMOUNT RECEIVED FROM A CUSTOMER SHRI SINDHU KUMAR T.N. FOR MAKING INVESTMENT IN IMMOVABLE PROPERTIES WITH A VIEW TO EARN INCOME ON SALE/APPRECIATION IN VALUE OF THOSE PROPERTIES. 62. THE PARTICULARS OF THE ADDITION MADE IN THREE YEARS ARE GIVEN BELOW : - A.Y. AMOUNT RS. 2008 - 09 645000.00 2009 - 10 855000.00 2010 - 11 500000.00 TOTAL 2000000.00 63. MR. SINDHU KUAMR T N IS A NON RESIDENT BASED IN DUBAI. HE IS A PROFESSIONAL PHOTOGRAPHER RUNNING HIS OWN STUDIO AT DUBAI. HE IS ALSO ENGAGED IN VARIOUS BUSINESS ACTIVITIES. 64. MR. SINDHU KUMAR T N APPROACHED THE ASSESSEE WITH A REQUEST TO SUGGEST SUITABLE INVESTMENT OPPORTUNITIES TO EARN INCOME BY WAY OF APPRECIATION IN THE VALUE OF THE PROPERTIES AND INCOME FROM OTHER ACTIVITIES SUCH AS AGRICULTURAL OPERATIONS. ACCORDINGLY TH E ASSESSEE RECEIVED AN AGGREGATE AMOUNT OF RS. 20 00 000/ - FROM SHRI SINDHUKUMAR T N. THE ASSESSEE FURNISHED CONFIRMATION LETTER BEFORE THE ASSESSING OFFICER CONFIRMING THE AGGREGATE AMOUNT OF RS. 20 00 000/ - GIVEN BY MR. SINDHU KUMAR TO THE ASSESSEE. COPY OF THE CONFIRMATION LETTER IS PROVIDED IN ANNEXURE F (PAGE NO. 54 TO 57 OF A.Y. 2008 - 09) AND ANNEXURE E (PAGE NO. 51 TO 54 OF A.Y. 2009 - 10 AND A.Y. 2010 - 11) OF WRITTEN SUBMISSION FIELD BEFORE THE INCOME TAX APPELLATE TRIBUNAL. 25 65. IT WAS ARGUED THAT ASS ESSING OFFICER WENT WRONG IN NOT ACCEPTING THE SOURCE IN RESPECT OF THE RECEIPT OF RS. 20 00 000/ - RECEIVED FROM SHRI SINDHUKUMAR T N. THE LEARNED ASSESSING OFFICER STATED THE FOLLOWING REASONS FOR REJECTING THE GENUINENESS OF THE CLAIM OF CREDIT. ( A ) IDENTITY OF THE CREDITOR IS NOT PROVED. ( B ) CREDITWORTHINESS OF THE CREDITOR IS NOT ESTABLISHED. 66. THE CREDITOR IS THE COUSIN BROTHER OF THE ASSESSEE. HIS POSTAL ADDRESS AND OTHER PARTICULARS WERE FURNISHED TO VERIFY THE IDENTITY OF THE CREDITOR. THE CRED ITOR ESTABLISHED HIS CREDITWORTHINESS BY CONFIRMING THAT HE IS EARNING PROFESSIONAL INCOME FROM RUNNING A STUDIO IN DUBAI EARNING AN ANNUAL INCOME OF ABOUT RS. 2 50 000 UAE DIRHAM (EQUIVALENT TO INR 25 LAKHS) . 67. THE ASSESSING OFFICER FURTHER FAILED TO NOTE THAT SHRI SI NDHUKUMAR T N HAS ACTUALLY CONFIRMED THE PAYMENT GIVEN TO THE ASSESSEE. COPY ENCLOSED FOR REFERENCE IN ANNEXURE F (PAGE NO. 54 TO 57 OF A.Y. 2008 - 09) AND ANNEXURE E (PAGE NO. 51 TO 54 OF A.Y. 2009 - 10 AND 2010 - 11) OF WRITTEN SUBMISSION FIL ED BEFORE THE INCOME TAX APPELLATE TRIBUNAL FOR THE RESPECTIVE YEARS. 68. THE ASSESSEE HAD DISCHARGED HIS PRIMARY RESPONSIBILITY AS PRESCRIBED UNDER SECTION 68 OF THE INCOME TAX ACT WITH REGARD TO THE SUM OF RS. 20 00 000/ - RECEIVED DURING THE THREE YEAR S FROM SHRI SINDHUKUMAR T.N. THE CONDITIONS TO BE FULFILLED WITH REGARD TO THE LOAN CREDITS AS DETAILED BELOW HAVE BEEN FULLY DISCHARGED IN THIS CASE : 26 (A) THE IDENTITY OF THE CREDITOR NAMELY SHRI SINDHUKUMAR T N HAS BEEN ESTABLISHED BY FURNISHING CONFIR MATION LETTER BEFORE THE ASSESSING OFFICER. (B) THE CREDITWORTHINESS OF THE CREDITOR IS ESTABLISHED BY CONFIRMING THAT HE IS RUNNING A PROFESSIONAL STUDIO AND HIS PER ANNUM EARNINGS IS 2 50 000 UAE DIHRAM 9EQUIVALENT TO INR 25 LAKHS). (C) THE GENUINENESS OF THE TRANS A CTIONS WAS ALSO ESTABLISHED. SHRI SINDHUKUMAR T N CONFIRMED TH A T HE H A D GIVEN RS. 20 00 000/ - TO THE ASSESSEE. 69. THUS THE ASSESSEE HAD FULFILLED ALL CONDITIONS PRESCRIBED UNDER THE ACT AND LAID DOWN IN SEVERAL JUDGMENTS AND JUDICIAL PRONOU NCEMENTS TO ESTABLISH THE ADVANCE OF RS. 20 00 000/ - RECEIVED FROM MR. SINDHU KUMAR TN. THE ASSESSING AUTHORITY DID NOT ASK FOR ANY FURTHER DETAILS OR PARTICULARS FROM THE ASSESSEE ON RECEIPT OF THESE EVIDENCES. THE FOLLOWING DOCUMENTS WERE PLACED ON RECORD IN PAPER BOOK NO. IIF SL. NO. ANNEXURE NO. CONTENTS OF THE ANNEXURE PAGE NO. FROM TO 1 ANNEXURE E - 1 COPY OF THE CONFIRMATION LETTER RECEIVED FROM SHRI T N SINDHU KUMAR 229 234 70. CONSEQUENTLY THE ASSESSING OFFICER WAS NOT CORRECT IN DISALLOWING THE SUM OF RS. 20 00 000/ - AGAINST THE AMOUNT RECEIVED FROM SHRI SINDHU KUMAR T.N AS UNEXPLAINED AND LD. CIT(A) HAS RIGHTLY DELETED THE SAME. WE FIND NO INFIRMITY IN HIS ORDER. THUS ISSUE R A I S ED BY REVENUE IS DISMISSED. 27 ISSUE NO. 6 NO T ACCEPTING THE SOURCE OF FUNDS IN THE CASH FLOW STATEMENT IN RESPECT OF THE ADVANCE GIVEN EARLIER FOR THE PURCHASE OF LAND SUBSEQUENTLY RECOVERED IN THE SAME YEAR FROM A CUSTOMER NAMELY SHRI O.M. VARGHESE. 71. THE ADDITION HAD BEEN MADE IN THE ASSESSM ENT FOR THE ASSESSMENT YEAR 2008 - 09 AS SHOWN BELOW : A.Y. AMOUNT 2008 - 09 300000.00 TOTAL 300000.00 72. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF PROVIDING ADVISORY SERVICES FOR THE PURCHASE OF PROPERTIES FOR AND ON BEHALF OF HIS CLIENTS AND THE AMOUNT S IS RECEIVED AS ADVANCE FROM THE CLIENTS FOR THE PURPOSE OF PURCHASE OF THE PROPERTIES REQUIRED BY THEM. THE ASSESSEE PAID AN AMOUNT OF RS. 3 00 000/ - TO MR. M O VARGHESE DURING THE PREVIOUS YEAR 2007 - 08 AND THE SAME WAS RECOVERED AT THE TIME OF CONCLUSIO N OF THE TRANS A CTION WITH A PROFIT OF RS. 50 000/ - DURING THE PREVIOUS YEAR 2007 - 08 ITSELF. THIS PROFIT WAS OFFERED FOR ASSESSMENT. HENCE THE LEARNED ASSESSING AUTHORITY OUGHT TO HAVE UNDERSTOOD THAT ASSESSEE HAD SHOWN ONLY THE NET CASH INFLOW FROM THIS DE AL AMOUNTING TO RS. 50 000/ - AS PROFIT FROM AGREEMENTS WHICH IS INCLUDED IN THE INCOME OFFERED AMOUNTING TO RS. 1 LAKHS SHOWN UNDER THE HEAD INCOME FROM BUSINESS. 73. ACCORDINGLY THE ADDITION OF RS. 3 00 000/ - MADE IS GROSSLY ERRONEOUS IN LAW AND ON FA CTS. 28 74. COPY OF AGREEMENT WITH SHRI O M VARGHESE IS PROVIDED IN ANNEXURE E (PAGE NO. 47 TO 53) OF WRITTEN SUBMISSIONS FILED BEFORE INCOME TAX APPELLATE TRIBUNAL FOR THE A.Y. 2008 - 09. 75. FOR THE ABOVE REASON THE ADDITION OF RS. 3 00 000/ - MADE BY THE ASSESSING AUTHORITY IN THIS ITEM WAS NOT CORRECT. 76. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) CORRECTLY ACCEPTED THE CREDIT AND DELETED THIS ADDITION OF RS. 3 00 000/ - . THE FOLLOWING D OCUMENTS WERE PLACED ON RECORD IN PAPER BOOK NO. II. SL. NO. ANNEXURE NO. CONTENTS OF THE ANNEXURE PAGE NO. FROM TO 1 ANNEXURE F - 1 COPY OF AGREEMENT WITH SHRI M O VARGHESE 235 250 77. ACCORDINGLY WE FIND NO INFIRMITY IN THE ORDER OF LD. CIT(A). THUS ISSUE RAISED BY REVENUE IS DISMISSED. ISSUE NO. 7 NOT ACCEPTING THE SOURCE OF FUNDS IN THE CASH FLOW STATEMENT BEING THE ADVANCE RECEIVED AGAINST SALE OF FLAT IN PERIYAR RE S IDENCY ALUV A FROM A CUSTOMER SHRI T.K. SHAJI RS. 5 00 000/ - . 78. PARTICULARS OF THE ADDITION MADE ARE GIVEN BELOW : A.Y. AMOUNT 2010 - 11 500000.00 TOTAL 500000.00 79. THE ASSESSEE ENTERED IN TO AN AGREEMENT WITH MR. T K SHAJI THATTANKUEIYAL HOUSE KAYAND OORAMANA P O MOOVATTUPUZHA FOR THE SALE OF A FLAT HAVING AN EXTENT OF1350 SQ. FT. AT PERIYAR RESIDENCY ALUVA FOR RS. 29 20 00 000/ - ON 12.08.2009. THE ASSESSEE RECEIVED AN ADVANCE OF RS. 5 00 000/ - AGAINST THIS AGREEMENT. HOWEVER DUE TO FINANCIAL DIFFICULTIES MR. T K SHAJI WAS UNABLE TO PROCEED WITH THE PROPOSAL AND COMPLETE THE TRANS A CTION. HENCE THE AGREEMENT WAS CANCELLED AND THE ASSESSEE REFUNDED THE ENTIRE AMOUNT T O MR. T K SHAJI DURING THE NEXT FINANCIAL YEAR 2010 - 11. 80. COPY OF CONFIRMATION RECEIVED BY MR. T SHAJI IS PROVIDED IN ANNEXURE F (PAGE NO. 55 TO 56) OF WRITTEN SUBMISSIONS FIELD BEFORE THE INCOME TAX APPELLATE TRIBUNAL FOR THE A.Y. 2010 - 11. 81. THE A SSESSING OFFICER WENT WRONG IN NOT ACCEPTING THE EXPLANATION REGARDING THE SOURCE FOR THE CREDIT BEING THE ADVANCE OF RS. 5 00 000/ - RECEIVED FROM SHRI T K SHAJI. 82. THE ASSESSING OFFICER STATED THE FOLLOWING REASONS IN A MECHANICAL MANNER FOR REJECTING THE CLAIM OF CREDIT. (A) IDENTITY OF THE CREDITOR IS NOT PROVED. (B) CREDITWORTHINESS OF THE CREDITOR IS NOT ESTABLISHED. 83. THE ASSESSEE PRODUCED THE CONFIRMATION LETTER FROM SHRI T. K SHAJI. THE CREDITOR IS A HILL PRODUCE DEALER. HE PAID THE ADVANCE OF RS. 5 00 000/ - OUT OF HIS SAVINGS FOR THE PAST 5 YEARS. 84. THE LEARNED ASSESSING AUTHORITY FURTHER FAILED TO NOTE THAT SHRI T K SHAJI HAS ACTUALLY CONFIRMED THE PAYMENT GIVEN TO THE ASSESSEE. COPY ENCLOSED IN ANNEXURE F (PAGE NO. 55 TO 56) OF WRITTEN SUBMISSION FILED BEFORE THE INCOME TAX APPELLATE TRIBUNAL FOR THE A.Y. 2010 - 11. 30 85. THE ASSESSEE HA DISCHARGED HIS PRIMARY RESPONSIBILITY AS PRESCRIBED UNDER SECTION 68 OF THE INCOME TAX ACT WITH REGARD TO THE SUM OF RS. 5 00 000/ - RECEIVED AS ADVANCE DURING THE YEAR FROM SHRI T.K. SHAJI. THE CONDITION TO BE FULFILLED WITH REGARD TO THE LOAN CREDITORS AS DETAILED BELOW HAVE BEEN FULLY DISCHARGE DIN THIS CASE: (A) THE IDENTITY OF THE CREDITOR VIS - A - VIS SHRI T K SHAJI HASL BEEN ESTABLISHED B Y FURNISHING THE CONFIRMATION LETTER BEFORE THE ASSESSING AUTHORITY. (B) THE CREDITOR IS HILL PRODUCE DEALER. HE PAID THE ADVANCE OF RS. 5 00 000/ - OUT OF HIS SAVINGS FOR THE PAST 5 YEARS. THUS THE CREDITWORTHINESS IS ESTABLISHED. (C) THE GENUINENESS OF THE TRANS A CTION WAS ALSO ESTABLISHED. SHRI T K SHAJI CONFIRMED THAT HE HAD GIVEN ABOUT RS. 5 00 000/ - AS PER CONFIRMATION LETTER. COY ENCLOSED IN ANNEXURE F (PAGE NO. 55 TO 56) OF WRITTEN SUBMISSION FILED BEFORE THE HONBLE INCOME TAX APPELL A TE TRIBUNAL F OR THE A.Y. 2010 - 11. 86. THUS THE ASSESSEE HAD FULFILLED THE THREE CONDITIONS PRESCRIBED UNDER THE ACT AND LAID DOWN IN SEVERAL JUDGMENTS AND JUDICIAL PRONOUNCEMENTS TO ESTABLISH THE GENUINENESS OF THE ADVANCE OF RS. 5 00 000/ - RECEIVED FROM MR. T K SHAJ I. THE FOLLOWING DOCUMENTS WERE PLACED ON RECORD IN PAPER BOOK NO. II. SL. NO. ANNEXURE NO. CONTENTS OF THE ANNEXURE PAGE NO. FROM TO 1 ANNEXURE G - 1 COPY OF CONFIRMATION LETTER RECEIVED FROM SHRI T K SHAJI. 251 252 87. IN VIEW OF THE ABOVE THE CREDIT OF RS. 5 00 000/ - IN RESPECT OF THE ADVANCE RECEIVED FROM T K SHAJI IS GENUINE AND CORRECT AND THE LD.CIT(A) 31 HAS RIGHTLY DELETED THE ADDITION. WE FIND NO INFIRMITY IN HIS ORDER. THUS ISSUE RAISED BY REVENUE IS DISMISSED. ISSUE NO. 8 AGRICULTURE INCOME FROM ABOUT 80ACRES OF LAND NOT ACCEPTED BY THE ASSESSING AUTHORITY. 88. PARTICULAR OF THE ADDITION MADE IN THE ASSESSMENTS ARE GIVEN BELOW : A.Y. AMOUNT RS. 2009 - 10 450000 2010 - 11 450000 TOTAL 900000 89. THE ASSESSING OFFICER SHOULD HAVE ACCEPTED THE AGGREGATE OF THE AGRICULTURAL INCOME OF RS. 12 00 000/ - OFFERED FOR ASSESSMENT IN THE TWO YEARS ON THE BASIS O F THE INFORMATION AND DOCUMENTS FURNISHED REGARDING FULL PARTICULARS OF THE EXTENT OF LAND TOGETHER WIT H THE INCOME EARNED FROM AGRICULTURAL OPERATIONS. IN THE ABSENCE OF ANY ACTION FROM THE ASSESSING AUTHORITY ASKING FOR FURTHER DETAILS WITH REGARD TO THE SAID INCOME IT WAS ABSOLUTELY WRONG ON THE PART OF THE ASSESSING AUTHORITY TO REJECT THE CLAIM FOR AG GREGATE AGRICULTURAL INCOME OF RS. 12 00 000/ - AND LIMITING THE AGRICULTURAL INCOME TO AN AGGREGATE AMOUNT OF RS. 3 00 000/ - FOR THE TWO YEARS. 90. COPIES OF THE COMPUTATION OF AGRICULTURAL INCOME OF RS. 6 00 000/ - EACH EARNED FOR A.Y. 2009 - 10 AND 2010 - 1 1 ARE FURNISHED IN THE FOLLOWING ANNEXURES OF RESPECTIVE WRITTEN SUBMISSIONS FILED BEFORE THE INCOME TAX APPELLATE TRIBUNAL : 32 1. ANNEXURE F (PAGE NO. 55 TO 56) OF WRITTEN SUBMISSION FILED FOR A.Y. 2009 - 10. 2. ANNEXURE G (PAGE NO. 57 TO 61) OF WRITTEN SUBM ISSIONS FILED FOR A.Y. 2010 - 11. 91. THEREFORE THE ASSESSING OFFICER SHOULD HAVE ACCEPTED THE AGRICULTURE INCOME OFFERED FOR ASSESSMENT FOR THE TWO YEARS AMOUNTING TO RS. 12 00 000/ - . THE FOLLOWING DOCUMENTS WERE PLACED ON RECORD IN PAPER BOOK NO. II. SL. NO. ANNEXURE NO. CONTENTS OF THE ANNEXURE PAGE NO. FROM TO 1 ANNEXURE H - 1 STATEMENT SHOWING THE COMPUTATION OF AGRICULTURAL INCOME FOR THE AY 2009 - 10 253 259 2 ANNEXURE H - 2 STATEMENT SHOWING THE COMPUTATION OF AGRICULTURAL INCOME FOR THE AY 2010 - 11. 260 266 92. IN THE CIRCUMSTANCES WE FIND NO INFIRMITY IN THE ORDER OF LD.CIT(A). THUS ISSUE RAISED BY REVENUE IS DISMISSED. 93. IN THE RESULT ALL THE APPEAL S OF THE REVENUE IN ITA NOS. 434 TO 440COCH/2014 ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 2 5 /10/2016. S D / - S D / - (GEORGE GEORGE K.) (B.P. JAIN) JUDICIAL MEMBER ACC O UNTANT MEMBER DATED : 2 5 /10/2016 COPY TO : - 1 - APPELLANT 2 - RESPONDENT 3 - CIT(A) 4 - CIT 5 - D/R ITAT COCHIN. ASSISTANT REGISTRAR