Mrs. Alapati Venkateswara Rao, Hyd, Hyderabad v. DCIT, Central Circle-6,, Hyderabad

ITA 626/HYD/2011 | 2004-2005
Pronouncement Date: 16-09-2011 | Result: Partly Allowed

Appeal Details

RSA Number 62622514 RSA 2011
Assessee PAN AEGPA1285B
Bench Hyderabad
Appeal Number ITA 626/HYD/2011
Duration Of Justice 5 month(s) 4 day(s)
Appellant Mrs. Alapati Venkateswara Rao, Hyd, Hyderabad
Respondent DCIT, Central Circle-6,, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 16-09-2011
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted SMC
Tribunal Order Date 16-09-2011
Assessment Year 2004-2005
Appeal Filed On 11-04-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A HYDERABAD BEFORE SHRI G.C. GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO. ASSESSMENT YEAR APPELLANT RESPONDENT 617/HYD/2011 618/HYD/2011 619/HYD/2011 620/HYD/2011 621/HYD/2011 622/HYD/2011 623/HYD/2011 2007-08 2002-03 2003-04 2004-05 2005-06 2006-07 2008 - 09 MRS. ALAPATI MADHAVI HYDERABAD (PAN AEGPA 1285 B) DY. COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE 6 HYDERABAD 624/HYD/2011 625/HYD/2011 626/HYD/2011 627/HYD/2011 2002-03 2003-04 2004-05 2005-06 SHRI ALAPATI VENKATESWARA RAO HYDERABAD (PAN AEGPA 1293 K) DY. COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE 6 HYDERABAD APPELLANT BY : NONE RESPONDENT BY : SHRI V.SRINIVAS DATE OF HEARING 23.8.2011 DATE OF PRONOUNCEMENT 16.9.2011 O R D E R PER BENCH: THIS GROUP OF ELEVEN APPEALS PREFERRED BY TWO ASS ESSEES RELATED TO EACH OTHER AS HUSBAND AND WIFE ARE DIRE CTED AGAINST TWO ORDERS OF THE COMMISSIONER OF INCOME-TAX(APPEALS). THESE ARE BEING DISPOSED OFF WITH THIS CONSOLIDATED ORDER. 2. AT THE TIME OF HEARING NONE APPEARED ON BEHALF OF THE ASSESSEE-APPELLANTS. HOWEVER THE LEARNED COUNSEL FOR THE ASSESSEE HAS FILED TWO APPLICATIONS BOTH DATED 21.8.2011 IN ITA NO.617/HYD/2011 FOR ASSESSMENT YEAR 2007-08 OF SMT. MADHAVI; AND ITA NOS.627 TO 629/HYD/2011 FOR ASSESSMENT YEARS 20 05-06 TO ITA NO.617/H/2011 AND 10 OTHERS SMT. ALAPATI MADHAVI & ANR. HYDERABAD 2 2007-08 OF SHRI VENKATESWARA RAO REQUESTING FOR AD JOURNMENT OF THE APPEALS ON THE GROUND THAT SOME OF THE APPEALS OF THESE VERY ASSESSEES FOR THE ASSESSMENT YEAR 2002-03 2003-04 2004-05 2005-06 AND 2008-09 IN THE CASE OF SMT.MADHAVI AND FOR ASSESSMENT YEAR 2002-03 TO 2004-05 IN THE CASE OF SHRI VENKATE SWARA RAO WERE ALSO PENDING BEFORE THE TRIBUNAL AND THAT THEY ALS O MAY BE CONSOLIDATED AND POSTED FOR HEARING. WE FIND THAT THE APPEALS OF THE TWO ASSESSEES FOR THE RELEVANT ASSESSMENT YEARS DE TAILED ABOVE HAVE ALREADY BEEN POSTED FOR HEARING ALONGWITH THE APPEAL ITA NO.617/HYD/2011 OF THE ASSESSEE SMT. MADHAVI AND AP PEALS ITA NO.627 TO 629/HYD/2011 OF SHRI VENKATESWARA RAO AND ALL OF THEM HAVE COME UP FOR HEARING TOGETHER ON 23.8.2011. AC CORDINGLY THESE APPLICATIONS OF THE LEARNED COUNSEL FOR THE ASSESSE ES REQUESTING FOR ADJOURNMENT OF THE APPEALS HAVE BEEN REJECTED BY TH E BENCH. ACCORDINGLY THESE APPEALS ARE BEING DISPOSED OFF E X-PARTE QUA THE ASSESSEE-APPELLANTS ON MERITS AFTER HEARING THE LE ARNED DEPARTMENTAL REPRESENTATIVE. 3. THE MAIN ISSUE IN THESE APPEALS RELATES TO THE ACTION OF THE ASSESSING OFFICER IN TREATING THE AGRICULTURAL INCOMES DISCLOSED BY THE ASSESSEES AS INCOME FROM OTHER SOURCES. RELE VANT GROUND AS TAKEN FROM ITA NO.618.HYD/2011 OF SMT. A.MADHAVI FO R ASSESSMENT YEAR 2002-03 READS AS FOLLOWS- 1. THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) OUGHT TO HAVE DELETED THE ADDITION OF RS.95 000/- UNDER T HE HEAD INCOME FROM OTHER SOURCES BY ACCEPTING THE AGRICULT URAL INCOME AS DISCLOSED. 3. LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED T HAT THE ASSESSEES HAVE SHOWN AGRICULTURAL INCOMES YEAR AFTE R YEAR IN THE ITA NO.617/H/2011 AND 10 OTHERS SMT. ALAPATI MADHAVI & ANR. HYDERABAD 3 RETURNS OF INCOME FILED. HOWEVER THE ASSESSEES HA VE FAILED TO FURNISH ANY SATISFACTORY EVIDENCE IN SUPPORT OF THE SAID AGRICULTURAL INCOMES BEFORE THE ASSESSING OFFICER OR BEFORE THE CIT(A). HE SUBMITTED THAT THE ASSESSEES COULD NOT FILE ANY EVI DENCE OR DETAILS OF THE EXPENDITURE INCURRED BY THEM FOR AGRICULTURAL O PERATIONS CARRIED OUT. HE SUBMITTED THAT HE ASSESSEES COULD NOT FILE ANY DOCUMENTARY EVIDENCE RELATING TO SALE OF AGRICULTURAL PRODUCE. HE SUBMITTED THAT THE ASSESSEES HAVE ADMITTED THAT THE INCOME FROM AG RICULTURAL LANDS WAS BASED ON ESTIMATION ONLY AND NO DETAILS THEREOF WERE MENTIONED BY THE ASSESSEES. HE SUBMITTED THAT IN THESE FACTS THE ASSESSING OFFICER WAS JUSTIFIED IN HOLDING THAT THE ASSESSEES COULD NOT PROVE THAT THEY HAVE AGRICULTURAL INCOME DURING THE RELEVANT Y EARS AND CONSEQUENTLY THE ASSESSING THE SAME UNDER THE HE AD INCOME FROM OTHER SOURCES. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LEARN ED DEPARTMENTAL REPRESENTATIVE AND HAVE PERUSED THE OR DERS OF THE ASSESSING OFFICER AND THE CIT(A). WE FIND THAT THE ASSESSEES HAVE DECLARED AGRICULTURAL INCOMES IN THE RETURNS OF INC OME FILED YEAR AFTER YEAR. THE ASSESSEES HAVE FILED THE COPY OF LAND PUR CHASE DEEDS FOR LAND ADMEASURING 11 ACRES 76 CENTS IN RESPECT OF SM T.MADHAVI; AND FOR LAND ADMEASURING 13 ACRES AND 92 CENTS IN RESPE CT OF SHRI VENKATESWARA RAO ALOGNWITH COPIES OF PATTADAR PASS BOOKS BEFORE THE ASSESSING OFFICER. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSEES HAVE ESTABLISHED THAT THESE AGRICULTURAL LANDS WERE HAVING IRRIGATION FACILITIES AND THAT THE ESTIMATION OF IN COME FROM AGRICULTURAL LAND WAS ON CONSERVATIVE BASIS. WE FI ND THAT THE FACT THAT THE ASSESSEE SMT. MADHAVI WAS OWNER OF 11 ACR ES 76 CENTS AND THE ASSESSEE SHRI VENKATESWARA RAO WAS OWNER OF 13 ACRES AND 92 CENTS OF AGRICULTURAL LAND COULD NOT BE DISPUTED ON BEHALF OF THE ITA NO.617/H/2011 AND 10 OTHERS SMT. ALAPATI MADHAVI & ANR. HYDERABAD 4 REVENUE. THE CLAIM OF THE ASSESSEES THAT THE AGRICU LTURAL LANDS WERE HAVING IRRIGATION FACILITIES ALSO COULD NOT BE CONT ROVERTED BY THE REVENUE AUTHORITIES. COPIES OF THE PATTADAR PASS-B OOKS WERE FURNISHED BY THE ASSESSEES DURING THE COURSE OF ASS ESSMENT PROCEEDINGS ITSELF AND CONTENTS THEREOF COULD NOT BE CONTROVERTED BY THE REVENUE. WE FIND THAT IN AGRICULTURAL OPERATION S IT IS UNCOMMON TO KEEP ANY DOCUMENTARY EVIDENCE OF THE EXPENDITURE INCURRED FOR AGRICULTURAL OPERATIONS OR FOR SALE OF THE AGRICULT URAL PRODUCE. THE INCOMES SHOWN BY THE ASSESSEE SMT. MADHAVI FORM A GRICULTURAL OPERATIONS OF RS.95 000 FOR ASSESSMENT YEAR 2002-03 ; OF RS.1 00 000 FOR ASSESSMENT YEAR 2003-04; OF RS.1 30 000 FOR ASS ESSMENT YEAR 2004-05; OF RS.1 30 000 FOR ASSESSMENT YEAR 2005-06 ; OF RS.1 45 000 FOR ASSESSMENT YEAR 2006-07; OF RS.1 50 000 FOR ASSESSMENT YEAR 2007-08; AND OF RS.2.25 000 FOR ASS ESSMENT YEAR 2008-09 COULD NOT BE SAID TO BE ABNORMAL OR EXCESSI VE. SIMILARLY EVEN IN RESPECT OF THE THE ASSESSEE SHRI VENKATESW ARA RAO INCOMES FORM AGRICULTURAL OPERATIONS DECLARED OF RS.1 35 00 0 FOR ASSESSMENT YEAR 2002-03; OF RS.1 50 000 EACH FOR ASSESSMENT YE ARS 2003-04 TO 2005-06 COULD NOT BE SAID TO BE ABNORMAL OR EXCESSI VE. IN CASE THE REVENUE AUTHORITIES HAVE ANY DOUBT REGARDING THE AC TUAL AGRICULTURAL OPERATIONS UNDERTAKEN BY THE ASSESSEES OR ON BEHALF OF THE ASSESSEES THEY COULD HAVE MADE FURTHER ENQUIRIES B Y EXAMINING THE ASSESSEES OR BY MAKING SPOT ENQUIRIES OR BY SUMMONI NG THE LAND REVENUE AUTHORITIES. NO SUCH EXERCISE WAS UNDERTAK EN BY THE ASSESSING OFFICER. WE ARE UNABLE TO SUSTAIN THE VI EW OF THE CIT(A) THAT SIMPLE POSSESSION OF THE AGRICULTURAL LAND DOE S NOT NECESSARILY MEAN THAT THE ASSESSEES DERIVED AGRICULTURAL INCOME S UNLESS IT IS ESTABLISHED THAT THERE WAS ACTUAL AGRICULTURAL OPER ATIONS CARRIED OUT BY THE ASSESSEES. HE HAS FURTHER OBSERVED THAT ENT RIES IN THE PATTADAR PASS BOOK OR EVEN A CERTIFICATE OF REVENUE AUTHORITIES ITA NO.617/H/2011 AND 10 OTHERS SMT. ALAPATI MADHAVI & ANR. HYDERABAD 5 INDICATING THE PROBABLE YIELD AND INCOME COULD NOT BE CONSIDERED AS ACTUAL INCOME UNLESS IT IS BACKED UP WITH NECESSAR Y EVIDENCE. IN THESE FACTS OF THE CASE WE ARE OF THE CONSIDERED V IEW THAT MERELY BECAUSE THE ASSESSEE COULD NOT PRODUCE ANY DOCUMENT ARY EVIDENCE FOR THE EXPENDITURE INCURRED BY THEM FOR AGRICULTUR AL OPERATIONS OR FOR SALE OF AGRICULTURAL PRODUCE IN SUPPORT OF THE INCO ME ESTIMATED BY THE ASSESSEES IT COULD NOT BE SAID THAT THE ASSESSEES HAS FAILED TO PROVE THE AGRICULTURAL INCOMES DECLARED BY THEM AND THE SAME COULD NOT BE ASSESSED AS INCOME FROM OTHER SOURCES. THE ASSESSEE S HAVE FILED THE EVIDENCE IN SUPPORT OF THE AGRICULTURAL LANDS HELD BY THEM AND ALSO THE PATTADAR PASS BOOKS EVIDENCING PROBABLE YIELD F ROM THE LANDS AND IT IS ALSO NOT IN DISPUTE THAT THE AGRICULTURAL LAN DS OF THE ASSESSEE WERE HAVING IRRIGATION FACILITIES. THE AGRICULTURAL INCOMES DECLARED BY THE ASSESSEES BEING REASONABLE IN VIEW OF THE EXTE NT OF LAND HOLDINGS OWNED BY THEM WE HOLD THAT NO CASE FOR TREATING TH E AGRICULTURAL INCOMES DECLARED AS INCOME FROM OTHER SOURCES COU LD BE MADE OUT BY THE REVENUE AND ACCORDINGLY THIS ISSUE IS DECID ED IN FAVOUR OF THE ASSESSEES. CONSEQUENTLY THE ADDITIONS IMPUGNED IN THESE APPEALS MADE BY THE ASSESSING OFFICER AND SUSTAINED BY THE CIT(A) ARE DELETED. 5. THE SECOND COMMON ISSUE INVOLVED IN ALL THESE A PPEALS RELATES TO CHARGING OF INTEREST UNDER S.234A 234B AND 234C OF THE ACT. THE GROUND TAKEN BY THE ASSESSEE SMT. MADHAVI ON THAT ISSUE IN APPEAL ITA NO.618/HYD/2011 FOR ASSESSMENT YEAR 2 002-03 READS AS FOLLOWS- THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) OU GHT TO HAVE DIRECTED THE ASSESSING OFFICER FOR CALCULATING INTEREST U/SEC. 234A B & C CORRECTLY WHILE PASSING THE ORDER U/S. 143)(3) R.W.S. 153A. ITA NO.617/H/2011 AND 10 OTHERS SMT. ALAPATI MADHAVI & ANR. HYDERABAD 6 6. WE HAVE HEARD THE LEARNED DEPARTMENTAL REPRESEN TATIVE. THE ISSUE OF CHARGING OF INTEREST UNDER S.234A 234 B AND 234C BEING CONSEQUENTIAL IN NATURE WE DIRECT ACCORDINGLY. 7. IN THE RESULT ALL THE ELEVEN APPEALS OF THE A SSESSEES ARE PARTLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 16.9.2011 SD/- SD/- (CHANDRA POOJARI) (G.C. GUPTA) A CCOUNTANT MEMBER V ICE PRESIDENT DATED 16 TH SEPTEMBER 2011 COPY FORWARDED TO: 1 . SMT. A. MADHAVI D.NO.8 - 3 - 833/K1 TO K8 FLAT NO.303 KRISHE MEADOWS SRINAGAR COLONY HYDERABAD 500 073 2 . SHRI A. VENKATESWARA RAO D.NO.8 - 3 - 833/K1 TO K8 FLAT NO.303 KRISHE MEADOWS SRINAGAR COLONY HYDERABAD 500 073 2. DY. COMMISSIONER OF INCOME - TAX CENTRAL CIRCLE - 6 HYDERABAD 3. COMMISSIONER OF INCOME - TAX(APPEALS) - I HYDERABAD 4. COMMISSIONER OF INCOME - TAX CENTRAL HYDERABAD 5. THE D.R. ITAT HYDERABAD. B.V.S