2019 (5) TMI 179 - AT - Income Tax

Tribunal Partially Grants Appeals, Adjusts Income Figures for Tax Relief

The Tribunal partly allowed both appeals, restricting additions for income from other sources and confirming claimed agriculture income at adjusted ... Characterization of income - treating the agriculture income as income from other sources - Bills and the vouchers for agriculture produce was available for part income - assessee claimed that it has also earned agriculture income from sale of soyabean, fruits and vegetables for which no “mandi receipts” is available - AO accepted agriculture income only for which bill was produced - land jointly co-owned - HELD THAT:- Co-ordinate Bench in assessee’s own case [2016 (10) TMI 1255 - ITAT INDORE] for Assessment Year 2010-11 wherein the issue with regard to sale of agriculture products without bills and vouchers was considered and 30% of such sales was treated as income from other sources As out of the total claim of agriculture income of ₹ 22,78,600/- we allow the claim of agriculture income at ₹ 19,00,204/- and confirm the addition for income of ₹ 3,78,396/- to be treated as income from other sources thereby partly allowing the assessee’s appeal As land is jointly owned by three co-owners, we therefore applying our own decision in Para 12 above partly allow the assessee’s appeal by restricting the addition for income from other sources at ₹ 3,78,396/- and allow the claim of agriculture income at ₹ 19,00,204/- as against ₹ 22,78,600/- claimed by the assessee. Issues Involved:Appeal against the addition of agriculture income treated as income from other sources for Assessment Year 2013-14.Detailed Analysis:Issue 1: Common Appeals and BackgroundThe two appeals filed by the assessee pertain to Assessment Year 2013-14 and challenge the orders of the Ld. Commissioner of Income Tax (Appeals)-II, Indore, arising from the order under section 143(3) of the Income Tax Act 1961 framed by ACIT, Khandwa. The appeals were heard together due to common issues.Issue 2: Disputed Grounds of AppealsThe assessee raised grounds of appeal related to the confirmation of additions made by the Assessing Officer regarding the total income and agriculture income assessed against the returned income. The appellant contested the reduction in agriculture income and its treatment as income from other sources, claiming the actions were wrong, illegal, and unwarranted.Issue 3: Dispute over Agriculture IncomeThe case involves 133 acres of jointly cultivated agriculture land, with the present appeal concerning two assesses. The dispute revolves around the claimed agriculture income of each assessee, with disallowances made by treating a portion as income from other sources due to lack of supporting documentation.Issue 4: Assessment and AppealsThe Assessing Officer computed the agriculture income after deductions and accepted a portion as the share of income. However, the remaining claimed agriculture income was treated as income from other sources. The assessee appealed to the Ld. CIT(A), who upheld the additions. Subsequently, the assessee approached the Tribunal challenging the treatment of agriculture income.Issue 5: Tribunal's DecisionThe Tribunal considered the submissions and past decisions, including a Co-ordinate Bench ruling in the assessee's case for a prior assessment year. Based on the evidence presented and applying previous decisions, the Tribunal recalculated the agriculture income for each assessee, allowing a portion and confirming the addition as income from other sources.ConclusionThe Tribunal partly allowed both appeals, restricting the additions for income from other sources and confirming the claimed agriculture income at adjusted amounts for each assessee. The decision was pronounced on 29.04.2019, providing relief to the assesses in the disputed matter.This detailed analysis covers the key aspects of the legal judgment, outlining the issues involved, the arguments presented, the decision-making process, and the final outcome of the appeals before the Tribunal.