2024 (7) TMI 1093 - AT - Income Tax

Tribunal Adjusts Income Estimates in Real Estate and Agricultural Cases, Citing Lack of Evidence and Expediency Needs.

Prabhakar Jadi Hyderabad Versus Dy. CIT, Central Circle 1 (1) Hyderabad

Prabhakar Jadi Hyderabad Versus Dy. CIT, Central Circle 1 (1) Hyderabad - TMI Issues:1. Condonation of delay in filing the appeal.2. Estimation of income for the assessment year 2021-22.3. Disallowance of agricultural income.Condonation of Delay:The assessee filed an appeal with a delay, attributing it to not being aware of the order and not regularly checking emails. The delay was condoned by the tribunal, considering the circumstances and allowing the appeal to be heard on merits.Estimation of Income:The assessee, a non-filer of income tax returns, had his income estimated by the Assessing Officer due to lack of material provided. The tribunal reduced the estimated income from 15% to 8% of the turnover for the real estate business. The tribunal noted the lack of evidence to support both the original 15% estimation and the assessee's claim of 5%.Disallowance of Agricultural Income:The Assessing Officer disallowed the entire agricultural income due to lack of documents bearing the assessee's name. The tribunal, acknowledging the unique circumstances, directed the Assessing Officer to consider 40% of the receipt as the assessee's agricultural income, upholding the rest of the addition. The tribunal avoided further verification to expedite the resolution of the issue.In conclusion, the appeal of the assessee was partially allowed by the tribunal, addressing the issues of delay condonation, income estimation, and agricultural income disallowance. The judgment aimed to strike a balance between the interests of the assessee and the requirements of tax assessment, providing a pragmatic resolution to the disputes presented.