TaxTMI 
TaxTMI 
2024 (5) TMI 290
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....present appeal against the order dated 15.11.2023 whereby, the income stands added to the appellant on the count of the income arising from sources other than agriculture income. However, at the very outset none of the authorities below i.e. Assessing Officer or the Commissioner, Income Tax Appeal have arrived at any conclusion so as to establish the finding. 2. That one of the associate Mr. Ram Kishore Suthar visited the office where on account of some misunderstanding client has been communicated to receive the certified copy of the order dated 15.11.2023. While the certified copy of the order was tried to be received on different occasions however, it came to be informed that the requirement of certified copy need not be obtained on the count that the order under the Appeal stands received under the digital signature of the Commissioner of Income Tax Appeal. 3. That despite the best efforts, the appellant was not able to receive the certified copy of the order, it is on this consequence, the Appeal stands delayed. After clarification of the misunderstanding on 02.03.2024 the appellant preferred the appeal without any further delay. Furthermore, mere procedure t....
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....llowing grounds: - "1. That the learned Appellate Below have failed to consider the appropriate nature of income and that the Assessee has rightly treated the income to accrue agricultural income and therefore, the learned Appellate Authority Below have failed to consider the classification made by the Authority. 2. That the learned CIT (A) have failed to consider the correct prospective in the matter as the bonafides attached to the Assessee cannot be disputed on the count of the fraud committed with the Assessee and therefore, the finding were arrived by the authority have been arrived at in a mechanical manner and without proper application of mind. 3. That the authority below have failed to consider the explanation accorded by the assessee in as much as the revenue record stands produced before the authorities below and as such, it has not been found that the revenue record produced is transpiring the transaction to be forged in any manner. 4. That the prevalent practice of maintaining the stock and keeping the stock in reserve could not have been questioned by the authorities below, there cannot be a boundation as to the selling of stocks to....
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..... 11. That the learned authorities have failed to consider the equitable practice and the principle applicable in the present circumstances and hence, the addition of income needs to be deleted. 12. That the judgment relived by the CIT(A), nowhere relates to the principle applicable in the present case and therefore, the legal principles relied upon by the authorities below could not be read against the Assessee and hence, on the count of non-applicability of proper law, the impugned order as well as the addition of income deserves to be quashed and set aside. 13. That the bank account of the Assessee stands produced before the authorities below and even, on that count nothing transpire before the authorities so as to add any other source of income. Therefore, the finding arrived is completely beyond the material available on record and hence, the appeal deserves to be accepted. 14. That the learned assessing officer eared in passing the order under order 143(3) and made addition under section 69(a) without adopting the true interpretation of the provision. Hence, the assessment order deserves to be quashed and set aside. 15. That the re....
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....assessee confronted about the details on the agricultural produce, she stated that the assessee is not much aware, but the Mr. Pappu who looks after the firm will be able to give those details. Vide question no. 17 the assessee was confronted that as per Khasara / Girdavari record the assessee has not produced the sarso but the bill suggest of sale of sarso. Here also the assessee replied that the same is known to Mr. Pappu. The assessee was also confronted on the issue of sale bill upon which the agricultural mandli raised doubts that the firm issued bill has not collected the cess. Here also the assessee said that the Mr. Pappu is aware about the sale bill as he went to sell the product and has collected the records. At last the assessee stated that she has Blood Sugar and pressure and high tension illness. The ld. AO then went to record the statement of the Mr. Pappu. In that statement he confirmed to have employed and working on behalf of the assessee. He also stated that the agricultural produce were taken away by the person from the firm and therefore, he is not much aware about that aspect of the matter. Even he has confirmed that the weight is also conducted in his presence....
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....had not availed those opportunities to explain satisfactorily the genuineness of cash credits, and the nature and source of cash deposits in bank accounts during the demonetization period. In the absence of the same, the AO had no option but to pass the assessment order u/s 143(3) of the Act with the aforementioned additions to the total income of the appellant. Against the said order, the appeal was filed on 8/1 / 2020 Since then, no further details have been provided. In Form-35 under Pt. 11, Statement of facts is reproduced here as under: "AS PER ASSESSMENT ORDER" Except for the statement made above in the appeal memo, the appellant had not provided any details regarding the nature and sources of cash deposits in her bank account along with the documentary evidences to explain to the satisfaction of AO or this office to claim the relief as sought in the grounds of the appeal. With regard to ground no. 3 wherein the application of section 115BBE was questioned, the issue is dealt with based on the legality involved in all such cases. It is noted that there are two limbs to this issue. One is the application of Section 115BBE per se and the seco....
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....ed from the taxation law, Second Amendment Act, 2016 that the Income-tax payable shall be the aggregate of the amount of income-tax calculated on the income referred to clause (a) and clause (b) of section 115BBE(1) of the Act at the rate of 60% w.e.f. 1-4-2017 that means from assessment year 2017-18 relevant to financial year 2016-17 rate of tax will be at sixty percent. In our view and as held by Hon'ble Kerala High Court, there was no new liability created and the rate of tax merely stood enhanced which is applicable to the assessment year 2017-18. The enhanced rate applies from the commencement of the assessment year 2017-18, which relates to previous financial year 2016- 17 as the case in the present assessee and not on the date of commencement of the amendment. The reasoning for the same is wat the date of amendment on which an amendment comes into force is the date of the commencement of the amendment. It is read as amended from that date. Under the ordinary circumstances, and Act does not have retrospective operation on substantial rights which have become fixed before the date of the commencement of the Act. But, this rule is not unalterable. The legislature may affect....
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....erstanding, section 69A is reproduced as under: - "Where in any financial year the assessee is found to be the owner of any money, bullion, jewellery or valuable article and such money, bullion, jewellery or valuable article is recorded in the books of accounts, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or valuable article or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the money and value of the bullion, jewellery or valuable article may be deemed to be the income of the assessee for such financial year." Section 69A therefore requires fulfilment of twin conditions: - (i) During the financial year, the investments/ money/bullion/article/valuable thing is not recorded in books of accounts, if any, maintained by him for any source of income, AND, (ii) Assessee fails to offer satisfactory explanation about the nature and source thereof. The expression "not recorded in the books of accounts, if any, maintained by him for any source of income" in section 69A clearly indi....
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....nder provisions which correspond to such heads would arise. The AO made additions LS 69A. Tribunal agreed with the AO as the assessee fails to explain the source of investment in gold. The Hon'ble High Court held that there was no fault in the Tribunal's decision as the assessee did not furnish any explanation about the source of investment in the gold. Mahabeer Prasad Jain Vs ACIT [2017] 88 taxmann.com 9 (Allahabad)/[2018] 253 Taxman 152 (Allahabad)/[2017] 399 ITR 600 (Allahabad) where Hon'ble Allahabad High Court held that where assessee had purchased drafts by depositing cash but failed to provide source of said cash utilised to make such investment, additions made under section 69 was justified Amita Kochar Vs ACIT [2017] 79 taxmann.com 432 (Patna)/[2016] 389 ITR 345 (Patna) where Hon'ble Allahabad High Court upheld addition where assessee, in block return, did not disclose total gold found during sealh nor did it give any reasonable explanation therefor and even figures given in belated explanation did not match with gold jewellery actually found in assessee's possession Vijay Kumar Saraf Vs ITAT [1996] 85 Taxman 465 (Madhya Prade....
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....ection 69(a) amounting to Rs. 10,75,000/- and section ATC exemption amounting to Rs. 50,000/-. 2. That in order to gain context on the factual aspect of the case, the following reference under the Income Tax Act are relevant :- Section 2(1)(a) defines Agricultural Income which includes itself any rent or revenue derived from rent which is situated in India and is use of Agriculture purpose. Further, the definition also includes any income derives from such land which is situated in India and is use for Agriculture purposes, by agriculture itself, performance by a cultivator or receiver of rent-in-kind of any process employed by the cultivator or receiver to render the produced rate or receive to be taken to market and further includes the sale by cultivator or received for rent-in-kind or produced raised or received in respect of which no process has been performed other than the process of nature describe in Paragraph-II of Sub Clause (b) of the definition. Lastly an income derived from a building owned and occupied by the receiver of the rent or revenue officers rent or occupied by the cultivator or receiver by the rent-in-kind with respect to the rent or procee....
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....he bare reading of the questionnaire incorporated in the Assessing Order reveals the very nature of the transaction to be done only at the instance of the cultivator namely Pappu. Further, in totality the Assess has clearly established that the transaction that have been transpired remains between the cultivator and the same so made. That consequently, the learned Assessing Officer have further relived on the questionnaire of Sudesh Kumar @ Pappu - The Cultivator, who has infact ascertain the receipts of transactions, now the fact that the transactions was questionable to the extent of Assessee could not have infact being arrived and therefore, the finding that the transactions with the firm that was none-existing could not have related to the assessee and the finding that the Assessee to any extent played a role to evade or meaningfully furnish a written so as to commit a fraud towards remedy stands completely misplaced and hence, by no means, the transactions could stands question at the stands of the Assessee and hence, the addition of the amount so arrived is completely misplaced. It is also relevant to note here that throughout the lifetime of the Assessee no other so....
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.... authorities. 6. That the learned Authorities below have failed to consider the fact that the land has always been cultivative in its very nature and as such was not in capable of generating the income under question which remains the pre-dominance source of income arising to the Assessee and hence, the finding arrived by the authorities below deserves to be set aside. 7. That the preponderance of probability theory would also goes in favour of the Assessee as much as the only pre-dominant income with the Assessee was that of agriculture and no other source of income has been brought on record by the assessing officer and thus, it cannot be disputed that the Assessee was engaged in any other profession or business. Hence, the explanation accorded by the Assessee could not have been denied on the count of demonetization. 8. That the Assessing Officer have itself proceeded on presumption of sources other than agriculture income to which effect no finding stands attached even by the CIT(A) and therefore, the standards of two as required could not have been solely based on the presumption of receipt produced by the Assessee. 9. That no amount of pres....
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....he written submission submitted that the ld. AO has tried to bring on record by huck or cocks to disbelieving the fact placed on record by the assessee to justify the case deposited into the bank account. The ld. AO has not disputed the holding of land growing of crop and the person who is taking care of agricultural Mr. Pappu the statement of the assessee Mr. Pappu and his son and his representative of the agricultural purchase Krishi Upaj Mandi, Shrivijaynagar was also recorded. All these statements nowhere established that the assessee does not have the agricultural income to drive home to support the argument. He referred the decision of the Coordinate Bench of Dehradun in ITA No. 36/DDN/2022 and decision of Co-ordinate Bench of Indore in ITA No. 9/IND/2022 dated 23.06.2023 and other more decision wherein it has been held that when the assessee do not have any other source of income and the assessee substantiated the agricultural income by way of the evidence the source of income in any manner whatsoever given only emanate from agricultural income only. 8. Per contra, the ld. DR decided who has filed lower authorities. The ld. AR vehemently argued that the ld. AO has in as m....
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....rther noted that this also may be the income of her husband and during so the said income as genuine. The assessee has coloured the story of sale of agricultural produced. The ld. AO based on this set of examination of facts in the assessment proceedings he added a sum of Rs. 10,75,000/- out of same sale of agricultural produce of Rs. 14,75,000 as undisclosed income of the assessee. The ld. CIT(A) also confirmed the view of ld. AO. Aggrieved from those orders of the lower authority the assessee is in appeal. The ld. AR vehemently argued before us that based on the information placed on record, it is not under dispute that the assessee is having the only source of income and that is agricultural income. Even on the same set of evidence the ld. AO has partly considered as income of the assessee. While making the addition the ld. AO recorded statement of Mr. Pappu, who handles the affairs of his agricultural land on sharing basis. The ld. AO also placed on record that Mr. Pappu was handling the activities related to the agricultural work and the issue of the bill being genuine or manipulated invoices is the responsibility of Mr. Pappu and not of the assessee as it is an evident from t....