TaxTMI 
TaxTMI 
2024 (9) TMI 1455
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.....2257/Mds/2013 has been partly allowed and partly dismissed. Operative portion of the impugned order reads as under:- 8. In ITA No.2257/2013, apart from the issue of exemption u/s.54F which has already been discussed above, additions were made on account of: Income from sale of trees Rs. 22,00,000/- Un-explained investment Rs. 11,03,608/- The assessee has assailed the addition of Rs. 22.00 Lakhs from the sale of trees as un-explained income. After perusal of impugned order and the assessment order it is evident that the assessee has not produced any reliable evidence to show the sale of trees. The Assessing Officer has made detailed enquiry from the locals and Village Administrative Officer (VAO) with reg....
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....,00,000/- as unexplained income from purported sale of casurina trees under Section 69 of the Income Tax Act, 1961. 4. At the time of admission of this Tax Case Appeal, the following substantial questions of law was framed for being answered:- "Whether the Tribunal is correct in law in sustaining the assessment of agricultural income reported as unexplained income based on the enquiry report of the Income Tax Inspector which report was not provided to the appellant for rebuttal, proving and establishing the gross violation of the principles of natural justice as well as the perversity/misdirection in the decision rendered in relation thereto?" 5. Earlier, an order came to be passed on 28.12.2011 under Section 144(A) of the In....
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.... Thus, there is no merits in the assessee's objection for treating the above said Rs. 22,00,000 as unexplained credit.". 8. In support of the above, the appellant had also obtained a letter of confirmation from an agent named Thangasamy who had stated that 200 cart loads of country wood were purchased over a period of time and that a total sum of Rs. 22 lakhs was paid to the appellant after deducting a 3% commission of Rs. 68,000/-. during the relevant financial year. 9. Thereafter, assessment was completed under Section 143(3) of the Income Tax Act, 1961 vide Order passed on 29.12.2011. The Assessing Officer had concluded as under:- "Further, in the 'Adangal' given by VAO, the land owned by the assessee a....
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....e proposal dated 21.12.2011 for which the assessee objected through his letter dated nil filed on 26.12.2011. However, the assessee's objection is not acceptable for the following reasons :- 1) The assessee had never explained orally or in writing with regard to the details of Imprest account. 2) Even in the latest letter filed on 26.12.2011 though he has stated that the Imprest amount is nothing but the salary advance/advance to building contractor for repairs etc. he did not produce any books of accounts or the break up figures for the above said payments nor any details of contractors to whom such advances were given. If the advance to building contractor for repairs had been given, then the sum should have been deb....
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....who had given a statement in favour of the appellant can be disbelieved and discredited long after it was given without cross examination of the said person by a mere reliance on an enquiry Report of the Income Tax Officer based on information gathered by the Income Tax Officer from the Village Headman. 13. The evidence which department has gathered is long after the felling of trees and sale by the appellant by placing reliance on the statement of the Village Headman. The statement of the Village Headman can at best only corroborate the stand which department based on evidence, if there were other compelling evidence. 14. It was incumbent on the part of the Income Tax Department to have summoned the said Mr.Thangasamy of Alangudi Tal....