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Income Tax Appellate Tribunal, “ SMC” BENCH, AHMEDABAD
Before: SHRI RAJPAL YADAV & SHRI PRADIP KUMAR KEDIA
आदेश / O R D E R
PER SHRI RAJPAL YADAV, JUDICIAL MEMBER : The Assessee is in appeal before us against the order of Ld.Commissioner of Income Tax(Appeals)-Gandhinagar,Ahmedabad [‘CIT(A)’ in short] dated 17/08/2017 passed for Assessment Year (AY) 2014-15. 2. The solitary grievance of the assessee is that the Ld. CIT(A) has erred in confirming the addition of Rs.3,24,400/- which was added by the
ITA No.2480/Ahd/2017 Smt. Pooja Ridham Sheth vs. ITO Asst.Year – 2014-15 - 2 - Assessing Officer on the ground that assessee must have incurred unexplained expenditure for earning the agricultural income.
The brief facts of the case are that assessee has filed her return of income electronically on 29/06/2014 declaring total income at Rs.2,32,460/-. She has revised this return on 26/10/2014 declaring total income at Rs.2,60,530/-. The case of the assessee was selected for scrutiny assessment and notice u/s.143(2) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") was issued and served upon the assessee. On scrutiny of the accounts, it revealed to the Assessing Officer that assessee was possessing 86997 square yards of land in different revenue estates. She has disclosed net agricultural income of Rs.8,11,040/-. The Assessing Officer recorded a finding that agricultural lands were situated in different revenue estates. She must have incurred expenditure which have not been disclosed by the assessee. He estimated 40% of agricultural income disclosed by the assessee as expenditure and made addition of Rs.3,24,400/-.
Appeal to the Ld.CIT(A) did not bring any relief to the assessee.
With the assistance of Ld.Representatives, we have gone through the record carefully. 86997 sq.yds. of agricultural land if convert into
ITA No.2480/Ahd/2017 Smt. Pooja Ridham Sheth vs. ITO Asst.Year – 2014-15 - 3 - acres, then it will come roughly 17 acres because one acre contains 4850 sq.yds. of land. The assessee has shown net agricultural income. If some expenses are to be estimated for earning agricultural income, then it will enhance the agricultural income on gross basis, there cannot be any separate addition. The approach at the end of Assessing Officer is erroneous. It is also to be kept in mind that 17 acres of land can generate net agricultural income of Rs.8,11,040/-. It is roughly Rs.50,000/- per acre per annum. It is quite improbable that details of agricultural produces and expenditures are being maintained by the farmers. It will always be an ideal situation if such details are maintained. But in the absence of such details, estimated opinion ought to be formed showing how much income can be generated in this area out of agricultural land. Looking with this angle, we are of the view that addition is not sustainable. Therefore, we allow the appeal of the assessee and delete the addition.
In the result, appeal of the assessee is allowed. Order pronounced in the Court on 15th March-2019 at Ahmedabad.
Sd/- Sd/- ( PRADIP KUMAR KEDIA) ( RAJPAL YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER
Ahmedabad; Dated 15/ 03 /2019 ट�.सी.नायर, व.�न.स./T.C. NAIR, Sr. PS
ITA No.2480/Ahd/2017 Smt. Pooja Ridham Sheth vs. ITO Asst.Year – 2014-15 - 4 -
आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The CIT(A)-Gandhinagar, Ahmedabad �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, स�या�पत ��त //True Copy//
उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील�य अ�धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation .. 13.3.19 (dictation-pad 7- pages attached at the end of this File) 2. Date on which the typed draft is placed before the Dictating Member ..14.3.19 3. Other Member... 4. Date on which the approved draft comes to the Sr.P.S./P.S…………….. 5. Date on which the fair order is placed before the Dictating Member for pronouncement…… 6. Date on which the fair order comes back to the Sr.P.S./P.S…….15.3.19 7. Date on which the file goes to the Bench Clerk…………………15.3.19 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Despatch of the Order………………