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Income Tax Appellate Tribunal, DELHI BENCH: ‘F’ NEW DELHI
Before: SHRI R. S. SYAL & SMT SUCHITRA KAMBLE
ORDER PER SUCHITRA KAMBLE, JM
This appeal is filed against order dated 31/5/2011 passed by the Ld. CIT(A), Karnal for the Assessment Year 2007-08 by the assessee.
The grounds of appeal
are as follows:- “
1. Under the facts and circumstances of the case the worthy Ld. CIT(A) erred in confirming the following additions. 195000.00: Deposit in the S/B account on 18/9/2006 Explained to be received by assessee as contract money against Agri. land at Village Bhaiswal.
180000.00: Deposit in the S/B account on 9/1/2007. Explained to be received by assessee as contract money against sale of Agri land at Village Sinkh. 280000.00: Explained by assessee as part of Rs. 4,00,000.00 Received against sale of Agri produce, the A.O accepted only Rs. 1,20,000/- as Agri. Income, thus making an addition of Rs. 2,80,000/-. 655000.00 Total
The family consists of Husband, Wife and one minor grandson putting up with grand parents. The total Agricultural Land Holding of the family is 18 Acres being managed like an A.O.P. Further the Land in question is situated in the most fertile Area (along the G.T. Road Belt) of Haryana yielding High Agri. Income/Yield.
The Assessing Officer and the Worth C.I.T (Appeals) failed to appreciate the factual position and made above said additions by rejecting all the explanations and Evidence produced before them, just on conjunctures and surmises.
2. The actions of worthy CIT(A) rejecting the claim of improvement in the form of boundary wall and others, made at the cost of Rs.50,000/- long back 22 years, thus causing an indexed addition of Rs.3,11,030/- as Long Term Capital Gain, is wrong and unjustified.
3. Without prejudice to the preceding grounds, the additions made are arbitrary and highly excessive.
4. Appellant craves the prevebge to raise any other legal ground at or before the date of hearing.”
The assessee has not pressed Ground No. 2, 3 & 4. Hence, the same are dismissed.
The assessee is a retired teacher and possess certain agricultural land. During the course of assessment proceedings it was noticed that the assessee has deposited certain amount in her bank account maintained with Punjab & Sindh Bank, Panipat. The assessee was asked to explain the source of deposits in her abovementioned bank accounts. The assessee has filed her explanation vide letter dated 30/11/2009 wherein she stated that on 18/9/2006 Rs.1,95,000/- cash was deposited in her account being advance lease rent money for 2 acres of agricultural land at Village Baishwal, Distt. Panipat for agricultural purposes for the period of 5 years from Mr. Naresh Kumar son of Shri Govardhan residence of Village Assankalan. The assessee further submitted that on 15/12/2006 Rs.3 lacs was deposited being amount withdrawals on 9/10/2006 from same bank account. On 15/12/2006 Rs.4 lacs was deposited being amount received from Mr. Kansi Ram, Pushpa Devi & Versa Rani being sale proceeds of Plot situated at Purewal Colony, Panipat. On 9/1/2007 Rs.1 lac deposited in the bank received from Jagmender Singh son of Shri Zile Singh being agricultural land given on contract for agriculture purpose at Village Sinkh. On 23/1/2007 Rs. 3 lacs deposited in the bank against withdrawals made on 16/1/2007 of Rs. 1.80 lacs and on 19/1/2007 of Rs. 1.20 lacs from the same bank account. On 7/2/2007 withdrawals of Rs. 9 lacs made for investment made in the LIC for the period of 5 years. On 14/2/2007 and 21/3/2007 Rs. 2 lacs each received by cheque from M/s Uttam Trading Company, Panipat for agricultural crops. On 2/3/2007 2 FDR’s of 2,17,506/- each matured on 12/3/2007, 16/3/2007 19/3/2007 & 20/3/2007 cash deposited against agriculture land given at Sinkh for agriculture purpose to Mr. Sandeep Son of Rampal resident of Jondhan Kalan. On 24/3/2007 & 28/3/2007 Rs. 9.50 cheques were issued for investment in LIC Policy for the period of 5 years. The Assessing Officer has made an addition of Rs. 4 lacs to the income of the assessee towards sale proceeds.
Addition of Rs.1,95,000/-, Rs. 1,80,000/- & Rs. 2,80,000/- in total amounting to Rs. 6,55,000/-.
The Ld. CIT (A) confirms the addition made by the Assessing Officer.
The AR submitted that the assessee owned 4 acres of agricultural land being 2 acres at Vill. Bainswal and 2 acres at Vill. Kohan, Panipat. Her husband has 5 acres agricultural land at Vill. Sinkh, Tehsil Isarana and also her grandson who is dependent on her, have 9 acres of agriculture land at Vill. Sinkh since 2002. So total agriculture land with Smt. Parkash Malik is 18 acres. The AR further submitted that Assessing Officer has accepted that the assessee is having agricultural income from 4 acres of land. The AR submitted that the Assessing Officer has overlooked the statements of the parties as well as ignored the documents as relates to here explanation given in respect of the amounts mentioned in the Assessment Order.
The DR relied on the Assessment Order as well as on the CIT(A)’s order and submitted that the said orders are correct.
We have perused the records and proceedings as well as heard the submission made by both the parties. It was observed that the Assessing Officer in assessment order did not mention any statement given by the parties who have given cash to the assessee neither there is any reference related to lease deed and revenue records and its extracts in the assessment order. Therefore, the crucial evidence and the statement of the parties should have been taken into consideration while passing the assessment order by the Assessing Officer. The Ld. CIT (A) also fails to look into these crucial aspects while dismissing the appeal of the assessee. This needs to be looked into by the Assessing Officer. Therefore, the matter is remanded back to the Assessing Officer.
In result, appeal is partly allowed for statistical purposes.
The order is pronounced in the open court on 09th of October, 2015.