TaxTMI 
TaxTMI 
2016 (5) TMI 853
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....IT(A) is being totally contrary to the provisions of law and facts on the record and hence the AO may kindly be directed to treat all the income as agriculture income as not income from other source and resultant addition may kindly be deleted in full. 3. Rs. 46,60,000/- : The Id. CIT(A) has grossly erred in law as well as on the facts of the case in confirming the addition of Rs. 46,60,000/- on account of unexplained credit in his bank account in the name of three persons(i.e Rs. 26,60,000/- of Sh. K.K. Jakhar, Rs. 5,00,000/- of Sh. Badri Ram Jakhar and Rs. 15,00,000/- of Sh. Jagdish Yadav). Hence the addition so made by the AO and confirmed by the CIT(A) is being totally contrary to the provisions of law and facts on the record and hence the same may kindly be deleted in full. 3.2 Further the Id. CIT(A) erred in conforming the addition, when the AO has not mentioned in the assessment order that under what provisions he had made additions. 4. Alternatively and without prejudice to above it is submitted that if the addition on account of agriculture income is sustained then the set off of the same may kindly be given against the addition on account of deposit in the bank acco....
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....come shown in the return of income. The assessee had also not produced copy of sale bills and bills and vouchers of expenses viz. seeds, pesticides, fertilizers, electricity bills, transportation bills, wages etc. incurred for cultivation on his own land. He simply said that agriculture produce were sold in open market, which was not found sufficient to the Assessing Officer especially when huge quantum of agriculture income had been shown by the assessee. Therefore, whatever agricultural icome disclosed by the assessee was not subject to verification. The ld Assessing Officer further observed that the assessee had claimed that he had continued of joint agricultural operation with Shri Surendra Singh and Smt. Nirmala as per agreement executed with Shri Surendra Singh and Smt. Nirmala resident of Gillankheda, Tehsil and district Fatehabad (Haryana). It was claimed by the assessee that the agreement was executed on 28/06/2007 for agriculture activities at the farm of other party. However, on perusal of details it was observed that no any authentic documents were furnished about this agreement from which it could be verified that this agreement is authentic and genuine document. Furth....
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....In absence of any required details, the assessee's agricultural income was estimated at Rs. 5.00 lacs by the Assessing Officer and remaining income of Rs. 33,75,000/- was treated as income from undisclosed sources. 4. Being aggrieved by the order of the Assessing Officer, the assessee carried the matter before the ld CIT(A), who had allowed the appeal by observing as under:- "4. I have considered submissions of the appellant and have also gone through the assessment order. It is seen that the appellant had shown income amounting to Rs. 38,75,000/- from agriculture. In support of the claim of agricultural income, the appellant had filed the necessary documents in the form Khasra Girdawari and relevant agreement. The AO, however, observed that the appellant had not furnished complete details of expenses such as seeds, pesticides, fertilizers, electricity bills etc. The appellant also could not produce Shri Surendra Singh and Smt. Nirmala with whom agreement was executed. The summons issued to Shri Surendra Singh were returned by the Postal Authorities. The AO. therefore, considered the agricultural income only to the tune of Rs. 5,00,000/- and added the rest of the amount as income....
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....comes to Rs. 11,49,995/- only as against Rs. 33,75,000/- claimed by the appellant. The appellant has, admittedly, not kept any details/papers to prove the agricultural income and the related expenses. Although there is no specific accounting system prescribed in respect of agricultural income, part IV of the first Schedule of the Finance Act clearly provides that certain sections of the Income Tax Act would apply for determining agricultural income. This means that the appellant was obliged to keep some sort of accounts which could help in determining the agricultural income. The appellant has failed to furnish any proof which could support the extent of agricultural income earned by him. 4.4 The AO has estimated the income from wheat, paddy and guavas at Rs. 22,99,990/-. The income has been estimated on the basis of field enquiries done by the jurisdictional ITO, Fatehabad. There is no reason to dispute this estimation done by the AO with the help of ITO, Fatehabad. The calculation done by the appellant in respect of paddy and wheat is based on ideal conditions while the basis of the calculation of income from guava is not clear. Hence, it is appropriate to adopt the calculation....
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....ake place of the reality, which is settled principle of law. Further, he relied various decisions of Hon'ble ITAT Jodhpur Bench i.e. Kamal Kishore Chandak Vs. ITO 103 TTJ 843 (Jd) wherein it has been held that the averment of the affidavit filed in support of the agriculture income remained uncontroverted and the ld Assessing Officer was not justified in making addition under the head agricultural income in absence of sale bill. It is also undisputed fact that the assessee has not maintained books of account as he was not running any business, for which he relied on the decision in the case of S.V. Hariprasad Vs. ITO 120 TTJ 1105 (Bang.) The particulars of land were given before the lower authority on that basis no addition is required to be made. The only dispute is the estimation of agricultural yield, rate and income. Two reports on this issue are available one by the ITO, Fatehbad, which was based on the Inspector's report, who is also not technical person. The second report by the agricultural department and market who are the technical person and authentic. After considering both the reports, the ld AR argued that on that basis, the actual income from the agricultural income ....
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....persons during the year under consideration and he was unable to prove the genuineness of the transaction, creditworthiness of the transaction and identity of the persons. Therefore, he made the addition of Rs. 51.25 lacs in the income of the assessee. 10. Being aggrieved by the order of the Assessing Officer, the assessee carried the matter before the ld CIT(A), who had allowed the appeal partly by observing as under:- "6. I have considered facts of the case. It is noted that the appellant has received Rs. 51,25,000/- from six different persons. The AO made the addition on the ground that the creditors were not produced before him in-spite of giving several opportunities to him. He could not furnish the confirmation or income tax details of these persons. In the remand/Rule 46A proceedings the AO again gave opportunity to the appellant to produce the creditors. In the report the AO has not mentioned anything about the admissibility of fresh evidences in the form of affidavits of Smt. V.D. Godara, Shri Anshul Godara and Shri Radhey Ram Godara. Hence, these additional evidences are admitted since the appellant was prevented by sufficient cause from producing the affidavits as the ....
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.... of this creditor also. The appellant now claims that the money was not received from Shri Badri Jakhar but from a firm where son of the creditor was a partner. Shri Badri Jakhar was also not produced before the AO to support the claim of the appellant. 6.5 It is obvious from the facts discussed above that the appellant has failed to give any credible explanation regarding deposits from these three persons. It is also noted that the appellant has been shifting its stand in respect of these persons. He has failed to produce these creditors before the AO in-spite of several opportunities granted to him. The appellant has failed to discharge the onus which lay on him to establish that the credits shown by him were genuine. The creditors were appellant's witnesses and should have been produced by him in support of his claim. The mere fact that the amount has been received by cheque does not establish the genuineness of the credit shown by the appellant, as held by the Hon'ble Guwahati High Court in the case of N.C. Kothari (264 ITR 254). 6.6 So far as the claim of the appellant that the addition could not be made u/s 68 is concerned, it is seen that the AO has not mentioned any sec....
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....fe Smt. Poonam being the power of attorney holder of these persons. The ld AR has drawn our attention on page No. 53 to 64 of the paper book, which is registered deed made by the assessee (power of attorney holder on plot No. 333, Guru Jambeshwar Nagar-A, Vaishali Nagar, Jaipur of Smt. Poonam Prasad, W/o- Shri Mahaveer Prasad) with Shri Kalyan Sahay Yadav. The assessee received Rs. 7.5 lacs vide cheque No. 14482 on 05/11/2008. Vide registered sale agreement dated 05/11/2008 between assessee and Shri Kali Charan Yadav (power of attorney holder on plot No. 332, Guru Jambeshwar Nagar-A, Vaishali Nagar, Jaipur), the assessee received Rs. 7.50 lacs vide cheque No. 10749 dated 05/11/2008, which has been credited in the bank account of the assessee in Oriental Bank of Commerce, Chitrakut Nagar, Jaipur on 07/11/2008, therefore, the assessee has discharged his onus to prove the source of deposit and credit in the bank account. He has further argued that Rs. 5 lacs were received from Shri Badri Jhakhar, which was received from M/s Choudhary Freight Carrier wherein Shri Ram Jeevan Choudhary, son of Shri Badri Jhakar (Choudhary) is a partner. The assessee has received this loan through cheque ....