TaxTMI 
TaxTMI 
2009 (6) TMI 121
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....peals relate to the assessment year 1999-2000 and arise out of the assessment completed under section 143(3) read with section 147 of the Income-tax Act, 1961. 3. I.T.A. No. 361/Coch/2007 is filed by the assessee, Smt. Annamma Koshy alias Latha Koshy. The appeal relates to the assessment year 2000-01. The appeal is directed against the order of the Commissioner of Income-tax (Appeals)-III at Trivandrum, dated January 24, 2007, and arises out of the assessment completed under section 143(3) read with section 147 of the Income-tax Act, 1961. 4. We heard Shri M.K. Gopinathan, learned Assistant Commissioner of Income-tax, appearing for the Revenue and Shri T.M. Sreedharan, learned counsel, appearing for the assessees. 5. In these appeals, the assessees are husband and wife. Dr. Koshy George is a medical practitioner and runs a clinic at Kollam. Smt. Annamma Koshy alias Latha Koshy is wife of Dr. Koshy George. She is a housewife. Each of them was holding 5 acres of coffee estate at Kalpetta, Wayanad. During the previous year relevant to the assessment year 1999-2000, they entered into an agreement with one Shri Chathan at Wayanad to sell the said estate for a consideration of R....
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....ly, the Assessing Officer noticed that there was a deposit of Rs. 5 lakhs, each in the name of the assessee and his wife. The assessee explained that these are the sale proceeds of the coffee estate of himself and his wife. The Assessing Officer did not accept the same and made additions. 12. Aggrieved, the assessee carried the matter in appeal before the Commissioner of Income-tax (Appeals). According to the Commissioner of Income-tax (Appeals), at the time of hearing, the assessee's representative agreed to assess the difference of Rs. 1.22 lakhs being the difference in the construction cost as declared by the assessee and determined by the Departmental Valuation Officer in respect of the hospital building. 13. In respect of the two additions made by the Assessing Officer the first appellate authority was of the view that the amount of Rs. 15 lakhs being the sale price of five acres of coffee estate was made available to the assessee only through banking channels. This has been proved beyond doubt. The presumption of the Assessing Officer that the sale consideration was only Rs. 2.65 lakhs as mentioned in the conveyance deed is not acceptable because in 1991 the assesse....
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....reement and he has received the said amount by cheques/demand drafts and paid compounding fee for understated consideration. Therefore, the Commissioner of Income-tax (Appeals) has accepted the contentions raised by the assessee and deleted the additions made by the Assessing Officer. We do not find any error on this finding. Accordingly, we uphold the order of the Commissioner of Income-tax (Appeals) with regard to the additions made by the Assessing Officer. 16. Apart from the factual finding arrived at by the Commissioner of Income-tax (Appeals) and confirmed by us, as stated in paragraphs above, there is a legal dimension to the issue. The Assessing Officer himself has characterised, without any contradiction of facts, that the additional amount received by the assessees on sale of coffee estates in Wayanad, over and above the registered sale deed, were "on money". The question is whether the said "on money" is still taxable in the present case. The property sold by the assessee was agricultural property situated beyond 8 k.m. of any Municipality. The property was not notified either. In such circumstances, any surplus of money arising to an assessee on sale of agricultural ....
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.... but in the agreement to sell, the parties had agreed for a consideration of Rs. 15 lakhs and the same was paid by way of cheques/demand drafts. In the case of Dr. Koshy George, we have already upheld the findings of the Commissioner of Income-tax (Appeals). The facts and circumstances of the case are being similar, we uphold the findings of the Commissioner of Income-tax (Appeals) and dismiss the Revenue's appeal. 22. In I.T.A. No. 683/Coch/2006 for the assessment year 1999-2000, appeal filed by the assessee, the first ground is regarding the enhancement of total income by way of difference in the disclosed cost of construction and value determined by the Departmental Valuation Officer. This issue is remitted back to the Assessing Officer for fresh consideration in view of the retrospective amendment to the Act. 23. The other grounds raised in this appeal read as under: "The learned Commissioner of Income-tax (Appeals) has erred in directing the Assessing Officer to include a sum of Rs. 45,000 in the total income of the appellant on the ground that the appellant has not been able to substantiate any explanation regarding deposit of Rs. 45,000 in her bank account....