TaxTMI 
TaxTMI 
2018 (1) TMI 851
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.... their statements before the ADIT (Inv.) Sholapur, in respect of the Agricultural operations on the lands of the appellant in Sholapur District pertaining to A.Y. 2001-02 only and hence the statement recorded for A.Y.2001-02 cannot be applied for A.Y. 1997-98. 2. The Ld. C1T(A) has illegally acted by issuing the notice u/s.251(2) for enhancing the assessment particularly when the orders of the ITAT, passed in favour of the assessee, were before him for A.Y. 2001-02 and 1999-2000 and the basis of enhancement was CIT's order for A.Y. 1999- 2000 hence such notice is illegally issued and deserves to be quashed. 3. The Ld. C1T (A) has grievously erred in law and facts by issuing the notice u/s.251(2) after a lapse of 15 years from the F.Y. Particularly when such assessment cannot be reopened u/s.147 as well as looking to the appeal filed by the assessee long back in F.Y. 2005-06 and hence after a lapse of such a long period the issuance of notice u/s.251(2) is absolutely illegal void ab-initio and as such the same deserves to be quashed. 4. In the facts and circumstances of the appellant's case, the Ld. CIT (Appeals) has erred in law in treating the Ag....
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....e Car and Rs. 12,756/- being 175th depreciation on the Motor Car of the appellant, although the A.O. had made this disallowance on presumption and probabilities only. 11. The Ld. CIT (Appeals) also erred in law and on facts in confirming the disallowance of Rs. 52,200/- being replacement of tyres for the Old Truck. This truck was inadvertently capitalized in the final accounts of the Appellant by his Accountant and the CIT (A) has confirmed this disallowance on the only ground that the appellant had not shown that truck as his Asset though this expenditure was claimed by the appellant as revenue expenditure. 12. The Ld.CIT(A) has further erred in confirming the addition of Rs. 52,000/- which has made by the A.O. by disallowing the claim u/s.10(40) of the Act. More particularly when 175th of Car Expenses and Car depreciation were disallowed by him. 13. The Ld. CIT (Appeals) erred in law and on facts in confirming the action of the Assessing Officer in initiating the penalty proceedings u/s.271(1)(c) of the I.T. Act, 1961 vide para 12.5 of the appellate order, for the alleged default of furnishing inaccurate particulars of income and also concealment of the....
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....e income from business/other sources. This assessment was challenged in first appeal, wherein as many as 27 grounds of appeal were raised, challenging the following additions and disallowances made by the A.O., while completing the scrutiny assessment. Out of the following additions and disallowances, the ld. CIT(A) has deleted/varied some of these additions/disallowances as well as enhanced the taxable income of the assessee by Rs. 56,49,542/- treating agriculture income as income from other sources. This was done by making additions of the above amount of Rs. 56,49,542/- treating it to be income from other sources out of total agriculture income of Rs. 70,80,134/- thus he has confirmed the disallowance of Rs. 6,33,592/- of Potato sales added by the Ld. A.O. and allow Rs. 8,00,000/- only as agriculture income on estimate basis thus enhanced the income by the said amount of Rs. 56,49,542/- and in respect of those additions which have not been deleted/reduced by the CIT(A), and the income enhanced by him under the head income from other sources the appellant has preferred this second appeal, being aggrieved by the order dated 3-8- 2012 passed by the CIT(A)-IV, Baroda in this case. T....
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....and after excluding this interest income of Rs. 10,66,866/- from this agricultural income there remains agricultural income the extent of Rs. 70,80,134/-. Again, out of this amount of Rs. 70,83,134/- an amount of Rs. 6,33,592/- is shown by the appellant on account of sale of potato seeds has already been treated as income from other sources as discussed in earlier. Therefore there remains only an amount of Rs. 64,49,542/-. Out of the said amount ld. CIT(A) remaining amount of Rs. 56,49,542/- was treated as income from undisclosed sources for the year under consideration. As appellant has failed to produce the relevant record and books of accounts and has also failed to furnish documentary evidence in support of his claim of agricultural income of Rs. 56,49,542/-. 8. Ld. AR cited an order of co-ordinate bench in ITA No.354/Ahd/2008 for Asst. Year 2001-02. In this order, Hon'ble Bench mentioned here as under: "The agriculture income declared by the assessee in the preceding years, which are listed below, have been accepted by the AO in the scrutiny assessment. Rs.11,40,022 in A.Y. 1993-94 Rs.25,70,952 in A.Y. 1994-95 Rs.46,57,100 in A.Y. 1995-96....
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....an be made. Therefore, we allow this ground of appeal in favour of the assessee. 15. So far as confirming disallowance of Rs. 52,200/- being replacement of tyres of old truck is concerned. The facts that the same was inadvertently capitalized in this regard, it was mentioned that the appellant himself has capitalized the amount of Rs. 52,200/- on account of tyre purchased. Further, it is not seen from the record that the appellant had made any claim before the AO that this amount of Rs. 52,200/- be allowed as revenue expenditure. The appellant has not filed relevant part of return of income, wherein he has made claim of above amount as revenue expenditure. Even this issue has not been discussed by the AO in the assessment order. In our considered opinion the plea of the appellant is not acceptable. Therefore, this ground of appeal is dismissed. 16. So far as ground related to confirming addition of conveyance allowance of Rs. 52,000/- u/s.10(14) ignoring 1/5th of car expenses and depreciation is concerned. On perusal of the assessment record, it is seen that appellant has received salary and conveyance allowance of Rs. 3000/- and Rs. 4,000/- per month from M/s. VPPL Pvt. Ltd.....