SHRI BALVANT KRISHNA TARALE,BELGAVI vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - 2(1), BELGAVI

The assessee pleads the following twin substantive grounds in instant appeal.

“The agricultural income reported is net of all expenses .Hence making addition towards expenses to earn such income would amount to double taxation, as such the addition may be deleted.

Discount allowed is a regular practice in the trade given to suppliers who give their produce for sale on commission. Hence addition of legitimate business expenditure is unwarranted and the addition be deleted.”

Learned DR next took me to the CIT(A)’s detailed discussion reading as follows :

Suffice to say, it has come on record that assessee’s instant appeal seeks to reverse both the lower authorities action disallowing income from jaggery sales and expenditure towards agricultural income, involving varying sums, which in turn stand partly affirmed in the CIT(A)s order to the foregoing effect.

Learned DR could hardly dispute that this is an instance of estimation only wherein the authorities concerned have not considered any past precedent or comparable trends in the very line of activity. Faced with the situation, I deem it appropriate to restrict the CIT(A)’s action confirming Rs.44,000/- addition to a lump sum figure of Rs.30,000/- and expenditure disallowance of Rs.2,55,000 to a lump sum amount of Rs.1 lakh only with a rider that the same shall not be treated as a precedent. The assessee gets part relief. Necessary computation shall follow as per law.

Delay of five days in filing of the instant appeal is condoned in the interests of justice.

This assessee’s appeal is partly allowed.