Income Tax Appellate Tribunal - Indore
Rajeev Shukla, Bhopal vs Acit 3(1), Bhopal on 21 November, 2016
ITA Nos. 503 & 504/Ind/2015
Rajiv Shukla
आयकर अपील
य अ धकरण, इ दौर यायपीठ, इ दौर
IN THE INCOME TAX APPELLATE TRIBUNAL,
INDORE BENCH, INDORE
ी डी.ट
.गरा सया, या यक सद य तथा
ी ओ.पी.मीना, लेखा सद य के सम%
BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER
AND SHRI O.P. MEENA, ACCOUNTANT MEMBER
आ.अ.सं./I.T.A. Nos. 503 & 504/Ind/2015
नधा रण वष /Assessment Years: 2010-11 &2011-12
Rajeev Shukla
Bhopal
PAN -ACIPS 9732P :: अपीलाथ /Appellant
Vs
ACIT 3(1)
Indore :: यथ /Respondent
राज व क ओर से/Revenue by Shri Girish Agrawal
नधा रती क ओर से/Assessee by Shri Mohd. Javed
सन
ु वाई क तार#ख 18.10.2016
Date of hearing
उ&घोषणा क तार#ख 21.11.2016
Date of pronouncement
आदे श /O R D E R
PER SHRI D.T. GARASIA, JM
These appeals have been filed by the assessee against the orders of the learned CIT(A)-2, Bhopal, dated 26.5.2015.
1 ITA Nos. 503 & 504/Ind/2015 Rajiv Shukla
2. The only ground in this appeal is against sustaining the addition of Rs. 1,60,000/- by the learned CIT(A).
3. The brief facts of the case are that the assessee has disclosed the agricultural income of Rs. 15 lacs for the assessment year 2010-11 and Rs. 20 lacs for the assessment year 2011-12. The Assessing Officer has verified the source of agricultural income and found that the assessee is having cultivation land holding of 137.115 acres (A.Y.2010-11) and 141.067 acres (A.Y.2011-12) out of which the income comes to about Rs.10,940/- (A.Y. 2010-
11) and Rs.14,178/- (A.Y. 2011-12) per acre. The Assessing Officer was of the view that Rs.10,940/- (A.Y. 2010-11) and Rs.14,178/- (A.Y. 2011-12) per acre is on higher side. Therefore, he estimated the assessee's income at Rs.9,780/- per acre and assessed the agricultural income at Rs. 4,15,086/- (A.Y. 2010-11) and Rs.13,79,000/- (A.Y. 2011-12) and not accepted the declared income. 2 ITA Nos. 503 & 504/Ind/2015 Rajiv Shukla
4. During the course of hearing, the learned counsel for the assessee submitted that the assessee is carrying out agricultural operations and the assessee has total sale proceeds in Krishi Upaj Mandi amounting to Rs.7668847/- Moreover, in the assessee's own case for the assessment year 2006-07 the agricultural income was assessed at Rs.11,521/- per acre. The assessee submitted that in similar area, the Tribunal has accepted the agricultural income at Rs. 25,000/- per acre in the case of Mukesh Sharma. The assessee has submitted particulars of agricultural land holding along with details of crops grown. The learned counsel for the assessee, therefore, argued that in this background the appeal of the assessee may be allowed.
5. On the other hand, the learned DR submitted that the assessee is declaring agricultural income on estimate basis and the assesee's income was estimated by ITAT in the 3 ITA Nos. 503 & 504/Ind/2015 Rajiv Shukla assessment years 2007-08 and 2008-09 and relying upon the same, the Tribunal has partly allowed the appeal, therefore, the appeal may be dismissed.
6. We have heard both the sides. We find that the issue in controversy is covered by the decision of the Indore Bench of the Tribunal in the assessee's own case for the assessment year 2006-07 in ITA Nos. 564 to 570/Ind/2010 wherein the Indore Bench of the Tribunal has estimated the assessee's income at Rs.11,521/- per acre. The relevant findings of the Tribunal read as under :-
3. We have considered the rival submissions and perused the material available on file. In the case of Shri Prakash Shukla (ITA No. 564/Ind/2010) the facts in brief are that the Assessing Officer disallowed the agricultural income by treating the same as taxable. The stand of the Assessing Officer is that though agricultural income of Rs. 6 lacs has been shown by the 5 assessee but no books of account are maintained by him.
The showed agricultural income was also found to be towards higher side. In its return the assessee disclosed agricultural income of Rs. 6 lacs from 57.76 acres of fully irrigated agricultural land. Before learned Commissioner of Income Tax (Appeals) the stand of the assessee is that agricultural activities were duly carried out by the assessee but the same were discarded by the Assessing Officer. It was further claimed that the assessee belongs to an agricultural family and in the past from several years the assessee family is having agricultural income and the same was shown in the returns of respective years. It was further claimed that in 4 ITA Nos. 503 & 504/Ind/2015 Rajiv Shukla past assessment years the agricultural income all along has been accepted. The relevant portion of such claim is summarised as under :-
The findings of the learned Commissioner of Income Tax (Appeals) are reproduced hereunder :-
" I have gone through the assessment order and submission of the ld. counsel furnished before me along with supporting evidence. The appellant was in possession of agricultural land which is not disputed by the A.O. The assessee has supported the agricultural income by submitting the mandi sale receipt of Krishi Upaj Mandi. Copy of Khasra Nakals of the agricultural land and the koli patta agreements. All these documents have not been doubted and the genuineness has not been disputed. It is not the first year in which the assessee has income shown from agriculture but he has the said source of income in earlier years also in which said income has been accepted. Thus, the disallowance of entire agricultural income shown by the appellant is not justified. During the year the appeal has made sales of agricultural produce at Rs.6,07,783/- and the net income shown is Rs.6,00,000/- on total land at 52.75 acres out of which 7.65 acres is self owned and 45.11 is the land taken on lease. It is noticed from the details filed that the land is irrigated and two crops are grown on thereon. As regards expenses it was contended that majority of the expenses have been incurred in kind by way of crops/grains but the appellant has not furnished details regarding expenses incurred on such agricultural activity. Further, during the assessment proceedings the appellant has also accepted that agricultural income is shown on estimates only. As the appellant has not 7 furnished details and supporting vouchers for expenses incurred along with complete details for the sale proceeds, in these circumstances agricultural income can only be estimated on reasonable basis. It is pertinent to note that Agricultural income shown by the appellant during the last five years has been accepted by the department. In previous year 2003-04 relevant to A.Y. 2004-05 agricultural income to the extent ofRs. 3,20,000/- was disclosed by the appellant from 42.47 5 ITA Nos. 503 & 504/Ind/2015 Rajiv Shukla acres of land out of which 7.65 acres was owned by him and 34.82 was taken on lease. The agricultural income shown was Rs. 7,500/- per acre. The agricultural income shown by the appellant was accepted by the A.O. in the assessment completed u/s 143(3) of the Income Tax Act. Since then there is a gap of 2 to 3 years and the yield of crops as well as prices of agricultural proceeds have risen considerably. In view of the same, the agricultural income has increased since then and, therefore, it would be fair and reasonable to estimate agricultural income @ Rs. 8,000/- per acre per annum. As the appellant during the year has cultivated 52.75 land hence net agricultural income estimated @ Rs. 8,000/- per acre which comes to Rs. 4,22,000/-. The balance amount of Rs. 1,78,000/- (Rs. 6,00,000 - Rs. 4,22,000) will be treated as the appellant's income from other sources and will be taxed accordingly."
We are also reproducing hereunder the concluding part of the order of the Tribunal in the case of Smt. Smita Binod (ITA No. 88/Ind/2010) dated 28th March, 2011 :-
The relevant portion of the order of the Tribunal dated 28.3.2011 is reproduced hereunder :-
"8. We have considered the rival contentions, carefully gone through the orders of the authorities below and the detailed chart of production and sale of various produce like wheat, chana, soya, placed on record duly indicating the month of production and also date of sale, rate at which the produce was sood. The assessee had also given detailed break up of the various expenditure incurred for producing 8 these crops which in tital amounted to Rs. 1,99,500/-. Thus, the total nbet income of Rs. 6,21,270/- was shown in respect of land of 18.86 acres in Ratanpur area, Bhopal, yielding average rate of Rs. 33,000/- per acre. The learned Commissioner of Income Tax (Appeals) estimated Rs. 15,000/- per acre. Keeping in view the details furnished by the assessee as narrated by the learned Commissioner of Income Tax (Appeals) in his order which has not 6 ITA Nos. 503 & 504/Ind/2015 Rajiv Shukla been controverted, it would be most reasonable to estimate the income at Rs. 22,000/- per acre of land for computing the agricultural income shown by the assessee with respect to various crops. The Assessing Officer is directed to recomputed the agricultural income by taking the income of Rs.22,000/- per acre of land. We direct accordingly.
9. In the result, the appeal is allowed in part in terms indicated above.
4. If the aforesaid conclusion drawn by the learned Commissioner of Income Tax (Appeals) and the order of the Tribunal are analysed, we find that the learned Commissioner of Income Tax (Appeals) has not disputed growing of crops on the total land at 52.75 acres (7.65 acres owned by the assessee and 45.11 acres taken on lease). The learned appellate Commissioner has estimated the agricultural income per acre at Rs. 8,000/- per acre per annum. Now the question arises whether such estimation is fair and reasonable ? 9 Without coming to any conclusion, the opinion of the department in the case of Shri Mukesh Sharma (supra) wherein the income has been estimated at Rs. 20,000/- per acre and the Tribunal has directed such estimation at Rs. 22,000/- per acre in the case of Smt. Smita Binod (supra). If these estimations are kept in juxtaposition with the facts of the present appeals, we find that for 45.11 acres (taken on lease) the assessee has paid lease rent, therefore, the net agricultural income may be lesser. The assessee in his return has claimed the agricultural land per acre are Rs. 11,521/- from the irrigated land, in our view, which is quite and reasonable, therefore, we direct the learned Assessing Officer to allow the agricultural production at the rate of Rs. 11,521/- per acre. Therefore, the stand of the learned Commissioner of Income Tax (Appeals) is modified to this extent only.
5. Since the identical issues are involved in remaining appeals, therefore, our aforesaid decision will be applicable to these appeals also on the same terms and conditions.7
ITA Nos. 503 & 504/Ind/2015 Rajiv Shukla
6. The next ground pertains to levy of interest u/s 234B and 234D of the Act. In the light of the above decision, the same will be consequential in nature. All these appeals are disposed of in the aforesaid manner"
7. We, respectfully following the above order of the Tribunal, direct the Assessing Officer to allow the agricultural production at the rate of Rs. 11,521/- per acre.
8. So far as the ground relating to interest u/s 234A, 234B, 234C and 234D of the Act is concerned, the same is consequential in nature.
8. In the result, the appeal of the assessee stands partly allowed.
The order has been pronounced in open Court on 21st November, 2016.
Sd/- sd/-
(ओ.पी.मीना) (डी.ट
.गरा सया)
लेखा सद य या यक सद य
(O.P.Meena) (D.T.Garasia)
Accountant Member Judicial Member
(दनांक /Dated : 21st November, 2016.
Dn/
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ITA Nos. 503 & 504/Ind/2015
Rajiv Shukla
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