UMIYA AGRICULTURE,RAJASTHAN vs. ITO WD 7(2), JAIPUR

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, “A” JAIPUR Jh lanhi xkslkbZ] U;kf;d lnL; ,oa Jh jkBkSM deys’k t;arHkkbZ] ys[kk lnL; ds le{k BEFORE: SHRI SANDEEP GOSAIN, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No. 664/JPR/2023 fu/kZkj.k o"kZ@Assessment Year : 2021-22 cuke Umiya Agriculture, ITO, Vs. Flat No. TB 908, Urban Jewels off Ward-7(2), Jaipur SEZ Road, Opposite Muhana Terminal Market, Sanganer, Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAGFU 6945 C vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Sh. Ruchesh Sinha (Adv.) jktLo dh vksj ls@ Revenue by : Sh. Dinesh Badgujar (Addl.CIT) lquokbZ dh rkjh[k@ Date of Hearing : 04/01/2024 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 18/01/2024 vkns'k@ ORDER

PER: RATHOD KAMLESH JAYANTBHAI, A.M. This appeal is filed by the assessee aggrieved from the order of the National Faceless Appeal Centre, Delhi [Here in after referred as (NFAC)] for the assessment year 2021-22 dated 06.09.2023, which in turn arises from the order passed by the AO, passed under Section 143(3)of the Income tax Act, 1961 (in short 'the Act') dated 29.12.2022.

2 ITA No. 664/JPR/2023 Umiya Agriculture vs. ITO 2. The assessee has taken following grounds in this appeal;

“1 On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in law in passing exparte order in the case of the Appellant. thereby confirming the assessment order. 2 On the facts and in the circumstances of the case and in law, the Ld. CIT (A) has not appreciated that the representation could not be made before the CIT (A), as the appellant could not have received the notice of hearing. 3 That on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in law in conducting the appellate proceedings in a complete haste and hurried manner and completing the same within a span of only one month. 4 That whether on the facts and circumstances of the case and in law, the Ld. CIT (A) has erred in law in not sending any separate notice for hearing to the appellant for hearing and while merely sending the same through emails, which remained undelivered. 5 That whether on the facts and circumstances of the case and in law, the Ld. CIT (A) has erred in impliedly confirming the addition of Rs. Rs.1,16,15,022 made by the Id. AO U/s 69 of the Income Tax Act in the in the case of the appellant. 6 That the appellant craves leave to add, amend, alter, vary and/or withdraw any or all the above grounds of appeal before or at the time of hearing of the appeal.”

is a firm and filed its return on 09.03.2022 declaring Nil income

which was processed by CPC u/s 143(1) of the IT. Act, 1961, on

27.05.2022 at returned income.

3.1 The case selected for complete scrutiny through CASS with

reason “Large Agriculture income where return of income for last

3 ITA No. 664/JPR/2023 Umiya Agriculture vs. ITO two A.Yrs. not filed. During the year under consideration the

assessee shown gross agriculture income of Rs. 1,16,15,022/-,

and after deduction of agriculture expenditure of Rs. 44,82,220/-

declared Net agriculture income of Rs. 71,32,802/- only, which is

not chargeable to tax in Col. 2 of Sch. EI of the ITR filed for A.Y

2021-22. Notice u/s 143(2) was issued on 28.06.2022 and was

duly served upon the assessee.

3.2 A detailed SCN dated 19.12.2022 was issued to the

assessee for uploading the documents/submission by 23.12.2022

which comprised pages 1 to 32, wherein all discussion in respect

of expenses and income which is declared by the assessee as

bogus agriculture income of Rs. 1,16,15,022/- have been

discussed in length. On examination of details furnished bills/

invoices, it is seen that all invoices of expenses are in the name of

Mrs. Yashoda Shah, director of the firm. Since all bills/invoices in

the name of Mrs. Yashoda Shah, cannot be treated for the

expenses of firm M/s Umiya Agriculture. The material which has

been shown as purchased in these bills/invoices, all these are

being used at the time of preparation of farming and middle of the

4 ITA No. 664/JPR/2023 Umiya Agriculture vs. ITO yielding, when the crop is ready for cutting after ripen, it is illogical

and not acceptable. Secondly, why all these bills were not shown

in the middle of the proceedings. Their value also does not match

with the amount any seeds, urea which was stated in the

proceedings. It is mentioned here that the expenses are being

incurred when the ripen time starts of plants. It is further mentioned

here that why copies of these bills were not furnished during the

entire proceedings. What is the reason or purpose behind this,

Submitting these bills after SCN. These bills are not related to the

firm, and also not allowable due to in the name of Yashoda Shah.

Therefore, in this because the source of cash to incur these

expenses, has not been furnished during entire proceedings. The

ld. AO noted that the assessee deliberately does not want to avail

the chance through VC to prove genuineness of contract, and

identity of farmers, who gave their land to their firm for farming.

Stating a technical fault is not a valid reason. The assessing officer

was waiting till 2.00 p.m on 24.12.2022, for the assessee firm

partner to join the VC which was scheduled for 90 mins. From

12.30 p.m onwards. Vide letter dated 21.12.2022, and letter dated

26.12.2022, the assessee requested apologies for VC. Another

5 ITA No. 664/JPR/2023 Umiya Agriculture vs. ITO chance through sue-moto VC for attending on 26.12.2022 has also

been provided to the assessee, however the assessee/partners of

the firm, or any farmer, have not been attended the VC nor replied

at all. The assessee vide its authorized CA, submitted the reply in

response to VC provided on 26.12.2022 at 12.30 P.M. in which the

partner and 15 farmers, who gave their land to firms M/s Umiya

Agriculture, were requested to attend the VC. However, neither

any partner, nor farmers has attended the VC. It is also pertinent to

mention here that many opportunities were provided to the

assessee firm, to produce these 15 farmers in the Video

Conference, but the assessee every time did not attend the VC

facility, giving reply of technical glitch, and filling medical report of

un-registered ayurvedic doctor, for the lady partner that she is

suffering from backache, and the other lady partner is taking care

of first lady partner. There are only 2 partners in the firm. The

assessee was provided sufficient opportunity to prove its claim of

gross receipt of exempted agriculture income of Rs. 1,16,15,022/-

declared for A.Y 2021-22. However, the assessee choose option

not to co-operate and prove the genuineness of transactions of

agriculture activities as well as contracts made between farmers

6 ITA No. 664/JPR/2023 Umiya Agriculture vs. ITO and M/s Umiya Agriculture, Firm. In the absence of supporting

documentary evidences, satisfactory reply to the questionnaire

issued as mentioned above, the genuineness of agriculture receipt

of Rs. 1,16,15,022/- could not be verified in view of agriculture

activities and other relevant factors to prove the transactions of

cultivation of crops, therefore, your claim of Gross Receipt of

agricultural income of Rs. 1,16,15,022/- for this year i.e. A.Y 2021-

22 is not acceptable and the same amount of Rs. 1,16,15,022/- is

being treated as unexplained income under the head of income

from other sources and earned from undisclosed sources.

assessee preferred an appeal before the ld. CIT(A)/NFAC here

also. The ld. CIT(A) has given three opportunities of being heard to

the assessee as detailed in below:-

Date of compliance Status

26.07.2023 No compliance

21.08.2023 No compliance

30.08.2023 No compliance

7 ITA No. 664/JPR/2023 Umiya Agriculture vs. ITO 5. Final opportunity was given to the assessee on 30.08.2023,

the notices were sought to e-mail id given in form No. 35 despite

services of three notices, there is no compliance at the end of the

assessee and therefore, the ld. CIT(A) confirmed the action of the

ld. AO.

has preferred the present appeal on the grounds as stated herein

above in para 2. The ld. AR of the assessee vehemently argued

that this being the first year of operation both partners being lady

having aged and also have their own medical problem. Though, the

ld. CIT(A) has granted 3 opportunities of being heard and ld. CIT(A)

and not discussed merits of the case and the ld. AO without giving

any deduction to the expenses incurred has added the whole sale

consideration shown by the assessee. Therefore, even on merits if

given a chance, the assessee has very much hope to reduce tax

burden on the firm which is operated by lady entrepreneur and

therefore, humbly prayed that if given a chance, the assessee will

remain compliant before the ld. CIT(A).

8 ITA No. 664/JPR/2023 Umiya Agriculture vs. ITO 7. Per contra, the ld. DR representing revenue has relied upon

the orders of the lower authorities and vehemently argued that, the

assessee has two time avoided the virtual hearing granted by the

AO. The bills for expenditure produced are in the name of partner

of the firm and therefore, the deduction has rightly been disbelieved

Based on these arguments the ld. DR supported the order of AO

adding the entire sale consideration as income of the assessee.

placed on record. The bench noted that though firm is run by two

lady entrepreneur and one partner is facing medical problem and

therefore, though the notices were issued in the email account of

one of the partners of the firm it remained non complied on account

of medical exigency. The bench also noted that in the case of the

firm, the entire sale consideration is added without giving any

deduction on account of expenses incurred to earn the income

offered by the assessee. The ld. AR of the assessee submitted that

these facts are not examined by the ld. CIT(A) and if given a

chance the assessee would like to plead these contentions before

the ld. CIT(A) and based on these arguments he prayed to set

9 ITA No. 664/JPR/2023 Umiya Agriculture vs. ITO aside the issue to the file of the ld. CIT(A). On the other hand, we

found that the ld. DR did not raise any specific objections to the

prayer of the assessee and also not disputed the contentions so

raised. Therefore, we are of the considered view that the assessee

is deprived of justice and based on these set of facts we are

inclined to accept the request of the ld. AR of the assessee to set

aside the case to the file of the ld. CIT(A), to decide the case of the

assessee after giving proper opportunity of being heard to the

assessee. At the same time, the assessee is directed to represent

and present all the facts before the ld. CIT(A) and should not ask

for adjournment of trifle grounds. At this stage, we remand back the

matter without commenting upon the merits of the case and ld.

CIT(A) is directed to pass an appropriate order in accordance with

law as there is no prejudice caused to the revenue if the same is

again remanded back to the ld. CIT(A) looking to the fact that the

firm has the first year of operation and same being run by two lady

entrepreneurs and entire sales is considered as income. Thus,

looking to the facts presented before us the bench feels that it

would be in the interest of justice to grant one more chances to the

assessee firm to remain present before the ld. CIT(A). But, looking

10 ITA No. 664/JPR/2023 Umiya Agriculture vs. ITO to the non compliance attitude at both the level of the assessee,

the bench feels that time of revenue officer are also important.

Considering the non-compliant attitude and lapses on laps on the

part of the assessee the assessee should bear some costs of these

lapses and therefore, the bench direct the assessee firm to pay a

sum of Rs. 1,000/- being the cost of non-appearance before the ld.

AO and Rs. 1500/- for not availing opportunity before the ld. CIT(A)

and thus in total the assessee is directed to pay a sum of Rs.

2,500/- to Prime Minister Relief Fund.

Before parting, we may make it clear that our decision to

restore the matter back to the file of the ld. CIT(A) shall in no way

be construed as having any reflection or expression on the merits

of the dispute, which shall be adjudicated by the ld. CIT(A)

independently in accordance with law.

In the result, the appeal of the assessee is allowed for

statistical purposes.

Order pronounced in the open court on 18/01/2024.

Sd/- Sd/- ¼ lanhi xkslkbZ ½ ¼ jkBkSM deys’k t;arHkkbZ ½ (Sandeep Gosain) (Rathod Kamlesh Jayantbhai) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member

11 ITA No. 664/JPR/2023 Umiya Agriculture vs. ITO Tk;iqj@Jaipur fnukad@Dated:- 18/01/2024 *Ganesh Kumar, PS आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- Umiya Agriculture, Rajasthan 2. izR;FkhZ@ The Respondent- ITO, Ward 7(2), Jaipur 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत. 6. xkMZ QkbZy@ Guard File {ITA Nos. 664/JPR/2023} vkns'kkuqlkj@ By order, सहायक पंजीकार@Aेेज. त्महपेजतंत