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Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI R.S. SYAL
आदेश / ORDER
PER R.S.SYAL, VP : This appeal by the assessee arises out of the order passed by the CIT(A)-1, Kolhapur on 02-05-2018 in relation to the assessment year 2007-08.
The only issue raised in this appeal is against the confirmation of addition of Rs.1,60,352/- out of agricultural income.
2 ITA No.1227/PUN/2018 Suhas Pandurang Kaulgud
Briefly stated, the facts of the case are that the assessee
offered agricultural income of Rs.2.00 lakh in his return.
During the course of assessment proceedings, the assessee was
called upon to substantiate such agricultural income. The
assessee submitted that he owned a land of 1.63 H at Bedag.
In addition, another 1.64 H of land was owned by his mother
adjacent to the land of the assessee. Both the lands were
claimed to have been cultivated by the assessee and the net
agricultural income of Rs.2.00 lakh was earned from such
cultivation.
As regards the proof of agricultural produce, the assessee
submitted copy of passbook of his son Mr. Chaitanya S.
Kaulgud showing receipt of Rs.1,20,705/- against the
sugarcane sale to Mahankali S.S.S.K. Ltd. Details of other
receipts were also given. The Assessing Officer made addition
of Rs.1,60,352/- by reducing Rs.1,20,705/-, being, the amount
received in the name of his son from the agricultural income
shown by the assessee at Rs.2.00 lakh and after reducing his
mother’s share at 50%. The remaining 50% at Rs.39,648/- was
reduced from the agricultural income declared by the assessee
3 ITA No.1227/PUN/2018 Suhas Pandurang Kaulgud
at Rs.2.00 lakh. This led to the making of an addition of
Rs.1,60,352/-. The ld. CIT(A) sustained the addition, against
which the assessee has come up in appeal before the Tribunal.
I have heard both the sides and gone through the relevant
material on record. Page 5 of the paper book is a copy of
submission filed before the ld. CIT(A) in which it has been
shown that the total agricultural produce was sold for
Rs.3,19,541/- to C.J. Roman dealer and Manganga S.S.S.K. in
total. The agricultural produce was not only sugarcane but
also Simla chilli. This position emerged from 7/12 extracts in
respect of land owned by the assessee and his mother. Once it
is proved that the assessee along with his mother earned gross
agricultural income of Rs.3,19,541/-, the net agricultural
income at Rs.2.00 lakh, cannot be denied. The AO has not
accepted the fact of the assessee’s son having received cheque
of Rs.1,20,705/- against the agricultural produce. He also
separated 50% of income as pertaining to assessee’s mother.
The ld. AR specifically stated before the authorities that no
credit of any such agricultural income was claimed either by
his son or mother, which has not been controverted. It was
4 ITA No.1227/PUN/2018 Suhas Pandurang Kaulgud
simply that cheque for sale of agricultural produce was
received in the name of his son. Once the existence of
agricultural income is established and further only the assessee
took credit for such income, in my considered opinion, the
authorities below should have accepted such explanation
rather than making and sustaining the addition. I, therefore,
order to delete the addition.
In the result, the appeal is allowed.
Order pronounced in the Open Court on 20th February, 2019
Sd/- (R.S.SYAL) उपा�य� उपा�य�/ VICE PRESIDENT उपा�य� उपा�य�
पुणे Pune; �दनांक Dated : 20th February, 2019 सतीश आदेश क� क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत / Copy of the Order is forwarded to : अ�ेिषत आदे आदे आदे अपीलाथ� / The Appellant; 1. ��यथ� / The Respondent; 2. आयकर आयु�(अपील) / 3. The CIT (Appeals)-1, Kolhapur 4. The Pr. CIT-1, Kolhapur िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “SMC” / 5. DR ‘SMC’, ITAT, Pune; गाड� फाईल / Guard file. 6. // True copy // आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune
ITA No.1227/PUN/2018 Suhas Pandurang Kaulgud
Date 1. Draft dictated on 19-02-2019 Sr.PS 2. Draft placed before author 20-02-2019 Sr.PS 3. Draft proposed & placed before the JM second member 4. Draft discussed/approved by Second JM Member. 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *