Income Tax Appellate Tribunal - Hyderabad
V. Ravinder Reddy (Huf), Warangal vs Department Of Income Tax on 15 February, 2010
IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD BENCH ' A', HYDERABAD
BEFORE SHRI N.R.S. GANSAN, JUDICIAL MEMBER AND
SHRI CHANDRA POOJARI ACCOUNTANT MEMBER
ITA.714/Hyd/2010
Assessment Year 2003-04
ITO, Ward No.2, Warangal Vs Shri V. Ravindra Reddy (HUF),
(PAN/GIR No.R-2081) Wardhannapet, Warangal
(Appellant) (Respondent)
Appellant by : Smt. V. Madhuvani, DR
Respondent by : Shri S. Rama Rao
ORDER
Per Chandra Poojari, Accountant Member
This appeal preferred by the Revenue is directed against the order passed by the CIT(A)-Vijayawada, dated 15.2.2010 and pertains to the assessment year 2003-04.
2. The Revenue raised the following grounds:
1. The order of the CIT(A) is erroneous both on facts and in law.
2. The CIT(A) ought to have confirmed the addition of Rs.5,24,085/-
disbelieving the sources of agricultural income.
3. The CIT(A) ought to have taken note of the extent of agricultural lands available during the year under consideration and the possibility of deriving income therefrom.
4. After hearing both the parties, we are of the opinion that similar issue was considered by the Tribunal for earlier assessment years in assessee's own case wherein the Tribunal confirmed the order of the CIT(A) by holding as follows:
3. After hearing both the parties, we are of the opinion that similar issue was considered by this Tribunal in the earlier assessment 2 ITA No.714/H/2010 Shri V. Ravinder Reddy , Warangal years 1999-2000, 2000-01, 2001-02 and 2002-03 in ITA Nos.619, 620, 622, 624/Hyd/2006 dated 18.6.2010 in assessee's own case wherein this Tribunal confirmed the order of the CIT(A) by holding as follows:
13. We have heard both the parties and perused material available on record. As discussed in earlier paras, the assessee owns substantial agricultural property which is subjected to cultivation and the assessee is having no other source of income and it is very difficult to hold that the assessee has diverted its taxable income as agricultural income. The assessing officer examined the lessee regarding the agricultural income who is confirmed the same which is placed on record at Page No.55 of the PB. The contention of the department is that these agreements are on plain paper and it is not a genuine one, and the departmental representative wanted the evidence for the area of land subject to cultivation and sale of crop. However, the fact of leasing the agricultural property for cultivation is evidenced by the agreement and also confirmed by the lessees.
The fact of cultivation cannot be doubted. According to the departmental representative, the documents procured after the date of survey i.e. agricultural pass book cannot be considered as genuine. This argument of the departmental representative holds no merit. To substantiate the claim of owning the land, the assessee has produced pass book and lease agreement for carrying on the agricultural operation and in our opinion, the findings of the CIT(A) is to be confirmed. Further, our is supported by the judgement of Supreme Court in the case of CIT Vs Noorjahan (237 ITR 570). Accordingly, we confirm the deletion of addition on account of agricultural income by CIT(A).
4. In the assessment year under consideration, both the assessment orders and the CIT(A) have been passed in similar lines as in the assessment years 1999-2000, 2000-01, 2001-02 and 2002-03 and as such, we are not in a position to take a different view than that of the earlier years wherein the agricultural income has been accepted by CIT(A) and confirmed by this Tribunal as follows:
Assessment Year Agricultural income 1999-2000 Rs.7.90 lakhs 2000-01 Rs.8.30 lakhs 2 3 ITA No.714/H/2010 Shri V. Ravinder Reddy , Warangal 2001-02 Rs.8.60 lakhs 2002-03 Rs.8.90 lakhs Accordingly, in the assessment year under consideration, the
agricultural income declared by the assessee at Rs.8,92,100/- is to be accepted in the absence of any contrary evidence against the assessee.
5. In the result, the appeal of the Revenue stands dismissed.
Order pronounced in the open Court 13.8.2010
Sd/- sd/-
N.R.S. GANESAN CHANDRA POOJARI
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated the 13th August, 2010
Copy forwarded to:
1. Shri V. Ravindra Reddy, c/o Mamatha Nursing Home, 4-32, Wardhannapet, Warangal District
2. ITO, Ward No.2, Warangal
3. CIT(A)- Vijayawada.
4. CIT-VI, Hyderabad
5. The D.R., ITAT, Hyderabad.
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