TaxTMI 
TaxTMI 
1989 (5) TMI 106
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....ves Smt. Daya Agrawal and Smt. Saroj Rani and their children. S/Shri Ram Gopal, Ramendra Kumar and Mahendra Kumar earlier owned one-third share each in their individual capacities in the following agricultural lands: S. No. Area of Land Location Kind of holding 1. 51 Bighas 5 Biswas Khasra Nos. 77 to 81, Village Afzalgarh, Teshsil Nagina, Distt. Bijnor. Freehold (5 plots) 2. 7 Bighas Village Sadashivpur Ganwari, Tehsil Nagina, Distt. Bijnor. Khasra Nos. 104 and 105. Leasehold (2 plots) After the death of Sri Ram Gopal on 10th May, 1982, his own 1/3rd share in the aforesaid lands passed on to S/Shri Ramendra Kumar and Mahendra Kumar equally, vide mutation order dt.10th July, 1982in terms of the Will dt.3rd March, 1982of Sri Ram Gopal. Thereafter, the share of S/Shri Ramendra Kumar and Mahendra Kumar in these lands became 1/2 each. The fact that these lands were held by these assessees in their individual capacities stands accepted by the Department vide order dt.7th March, 1984under s. 61 of the ED Act, 1953. The plot Nos. 104 and 105 measuring 7-1 Bighas in Village Sadashivpur Ganwari were taken on lease by these assessees from the Irrigation ....
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....oyed in carrying on personal business in pawning of silver bullion and ornaments besides income from commission in similar goods. No accounts were kept by the assessees for these sources of income also, nor any returns filed in respect of this source of income prior to 1982-83. Since in the account books no entries appeared in respect of "girvi" income in individual capacity, the ITO accepted the incomes shown only on a protective basis. He held that the assessees were doing money-lending business as individuals and that it was not an HUF business. 6. The estimates of income as per the assessees and the income-tax authorities are as follows: Year Agricultural income Business income Savings As per assessees As per ITO As per AAC As per assessees As per ITO As per AAC As per assessees As per ITO As per AAC (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 1977-78) . . . ) . . Rs. 2,000) . . 1978-79) . . . ) . . Rs. 4,000) . . 1979-80) . . . ) . . Rs. 6,000) 5,000 15,000 1980-81) . . . ) . . Rs. 8,000....
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....ome of Rs. 42,200 (Rs. 7,000 + Rs.25,200 + Rs. 17,000) as against the declared income of Rs. 7,000. The learned AAC took this figure at Rs. 36,700 as explained above i.e., Rs. 7,000 + Rs. 19,700 (Rs. 57,900 - Rs. 38,200) + Rs. 10,000 (Rs. 40,000 - Rs. 30,000). 9. For the asst. yr. 1984-85 the assessees declared taxable incomes of Rs.10,400 from pawning and commission business which was assessed by the ITO again on a protective basis. The ITO made an unexplained income addition of Rs. 23,000 in respect of agricultural income (Rs. 46,000 - Rs. 23,000) and completed the assessment at a figure of Rs. 33,400 (Rs. 23,000 + Rs. 10,400). The AAC reduced it to Rs. 26,400 (Rs. 46,000 - Rs. 30,000 + Rs. 10,400). 10. In the case of Mahendra Kumar HUF the declared and assessed incomes were as follows: . . As per assessee As per ITO As AAC (1) Share income from M/s Babu Ram Gopal (Sarrafa), Dhampur. Rs. 5,472 Rs. 5,472 Rs. 5,472 (2) Share income from Ramendra Kumar, Afzalgarh. Rs. 40,220 Rs. 40,220 Rs. 40,220 (3) Investment in pawning as per order under s. 132 (5) . Rs. 11,900 deleted. (4) Interest @ 24% on Rs. 11,900 . ....
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....as of land and the crops grown (sugarcane, paddy, dhan and lohi). The land is well irrigated by tube-well canal. In respect of leasehold plot Nos. 104 and 105 in Village Sadashivapur Ganwari, copies of land lease receipts were also filed. Prior to the death of Ram Gopal the shares of the assessees in the individual agricultural lands was 1/3rd each and thereafter, as already mentioned earlier, their share became one half each. The crops grown were cash crops, the prices of which were continuously rising. The lands are well irrigated and cultivation is by modern methods. The opening capital of Rs. 30,000 as declared by the assessees as on 1st April, 1981(details mentioned earlier) over the previous 5 years appears to be quite reasonable, considering the area of 58 bighas 5 biswas (51 bighas 5 biswas + 7 bighas) and 1/3rd share in the net agricultural income after allowing household expenses and other outgoings. In the later years the income disclosed from 1/2 share appears equally reasonable. An additional reason is that for similar land in the same village Shahjehanpur, Tehsil Nagina owned by S/Shri Ram Niwas, Ram Avtar and Anil Kumar (43 bighas 19 biswas) the Department had accept....