ITO, Bangalore v. Smt. B. Bhagyalakshmi, Bangalore

ITA 3814/BANG/2004 | 1998-1999
Pronouncement Date: 29-01-2010 | Result: Dismissed

Appeal Details

RSA Number 381421114 RSA 2004
Bench Bangalore
Appeal Number ITA 3814/BANG/2004
Duration Of Justice 5 year(s) 1 month(s)
Appellant ITO, Bangalore
Respondent Smt. B. Bhagyalakshmi, Bangalore
Appeal Type Income Tax Appeal
Pronouncement Date 29-01-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 29-01-2010
Date Of Final Hearing 30-12-2009
Next Hearing Date 30-12-2009
Assessment Year 1998-1999
Appeal Filed On 29-12-2004
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE C BENCH BANGALORE BEFORE SHRI SHAILENDRA KUMAR YADAV JM AND SHRI A. MOHAN ALANKAMONY AM ITA NO.3814(BANG.)/2004 (ASSESSMENT YEAR : 1998-99) THE INCOME-TAX OFFICER WARD-8(2) BANGALORE. APPELLANT VS SMT. B. BHAGYALAKSHMI NO.135/1 BRINDAVAN BEHIND BALAJI COMPLEX I FLOOR AMRUTHAHALLI MAIN ROAD BANGALORE RESPONDENT AND ITA NOS.1186 1187 & 1188(B)/2008 (ASSESSMENT YEARS: 1998-99 1999-2000 & 2001-02) SMT. B. BHAGYALAKSHMI NO.135/1 BRINDAVAN BEHIND BALAJI COMPLEX I FLOOR AMRUTHAHALLI MAIN ROAD BANGALORE APPELLANT VS THE INCOME-TAX OFFICER WARD-8(2) BANGALORE. RES PONDENT ASSESSEE BY : SHRI V.SRIDHAR REVENUE BY : SMT. V.S.SREELEKHA O R D E R PER SHAILENDRA KUMAR YADAV JM : ITA NOS.3814(B)/04 & 1186 TO 1188(B)/09 2 ALL THESE APPEALS PERTAIN SAME ASSESSEE FOR THE ASSESSMENT YEARS 1998-99 1999-2000 AND 2001-02 ARISING FROM T HE SAME ORDER OF THE CIT(A) ON DIFFERENT ISSUES. SO THEY ARE BEI NG DISPOSED OF BY A COMMON ORDER FOR THE SAKE OF CONVENIENCE. IN ITA NO.3814(B)/2004 BY REVENUE AND ITA NO.1186(B )/2008 BY ASSESSEE FOR AY: 1998-99) 2. THE REVENUE HAS FILED THIS APPEAL AGAINST THE ORDER OF CIT(A) THE MAIN ISSUE IS WITH REGARDS TO INVESTMENT OF RS. 11 15 000/- IN M/S SIDDESHWARA OIL & ALLIED INDUSTRIES PVT. LTD. AND ALSO FOR PURCHASE OF AGRICULTURAL LANDS AT BELLARY. THE ASS ESSEE CLAIMED TO HAVE BEEN MADE OUT OF RECEIPTS FROM POULTRY BUSINES S. THE AO DISBELIEVED THESE RECEIPTS ON THE GROUND THAT NO EV IDENCE WAS PRODUCED IN RESPECT OF RECEIPT OF POULTRY BUSINESS. HOWEVER THE FACT OF EXISTENCE OF POULTRY BUSINESS HAS NOT BEEN DISPUTED BY THE AO. THE FACT THAT THE STOCKS ARE BEING SHOWN AT TH E SAME FIGURE FROM YEAR AFTER YEAR MAY BE INDICATIVE OF INCORRECT NESS OF THE STOCK BUT CANNOT NECESSARILY BE INDICATIVE OF THE INCORRE CTNESS OF THE SALES LEAVE ASIDE TOTAL ABSENCE OF SALES AS CONCLUDED BY THE AO. THE CIT(A) OBSERVED THAT BY TAKING THE ENTIRE RECEIPT A S UNEXPLAINED THE AO PRACTICALLY DENIED THE EXISTENCE OF POULTRY BUSI NESS DURING THE YEAR WHICH WOULD MEAN THAT THERE IS NO EXPENDITURE DURING THE YEAR. YET THE RETURNED INCOME FROM POULTRY BUSINE SS HAS BEEN ITA NOS.3814(B)/04 & 1186 TO 1188(B)/09 3 ACCEPTED BUT THE ADDITION MADE IS NOT BASED ON COG ENT REASONS IN AS MUCH AS THE UNEXPLAINED CASH AND ADDED AS UNEXPL AINED INVESTMENT WITHOUT CORRELATING THE TWO. PRIMA FACI E EVEN IN THE ABSENCE OF EVIDENCE PRODUCED BY THE ASSESSEE IN RES PECT OF SALE OF POULTRY THE ADDITION ARE NOT BASED ON COGENT REASO N. SO THE CIT(A) SATISFIED HIMSELF WITH REGARD TO POULTRY BUSINESS A ND TAKING INTO THE FACTS AND CIRCUMSTANCES WAS JUSTIFIED IN DELETING T HE ADDITION IN QUESTION. THE SAME IS UPHELD. ITA NO.1186(B)/2008(AY: 1998-99) 3. THIS APPEAL IS BY THE ASSESSEE AGAINST RECOVERY OF LOAN AMOUNT OF RS.7 05 000/-. THE ASSESSEE HAS CLAIMED THE ABOVE SAID AMOUNT BEING REALIZED FROM DEBTORS WHICH WERE EXTEN DED OUT OF AGRICULTURAL INCOME. THE AO MADE ADDITION IN ABSEN CE OF DETAILS AND ADDED THE SAME TO INCOME OF ASSESSEE WHICH WAS CONFIRMED BY THE CIT(A). THE STAND OF THE ASSESSEE IS THAT MONE Y RECEIVED WAS OUT OF THE LOANS GIVEN IN THE PAST OUT OF INCOME AL READY TAXED. THE DETAILS OF PERSONS FROM WHOM THE LOANS ARE CLAIMED TO HAVE BEEN RECOVERED AND INVESTMENT THEREOF WERE FURNISHED. T HE ASSESSEE ALSO CLAIMED THAT THE INCOME HAD ALREADY BEEN OFFERED TO TAX. THE AO WAS HAVING ALL THE DETAILS OF EARLIER YEARS WHICH C OULD HAVE VERIFIED EVEN IF THE ASSESSEE WAS NOT IN A POSITION TO PLACE THE SAME BEFORE THE AO ONCE SUCH STAND WAS TAKEN. IN VIEW OF THE AB OVE AND IN THE ITA NOS.3814(B)/04 & 1186 TO 1188(B)/09 4 INTEREST OF JUSTICE WE SET ASIDE THE ORDER OF AUTH ORITIES BELOW ON THIS ISSUE AND RESTORE THE MATTER TO AO WITH A DIRECTION TO DECIDE THE ISSUE AT HAND AS PER FACTS AND LAW AVAILABLE AT RE LEVANT POINT OF TIME AFTER PROVIDING DUE OPPORTUNITY OF HEARING TH E ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO COOPERATE IN THE PROCE EDINGS. 4. IN THE RESULT THE APPEAL BY THE REVENUE IS DIS MISSED WHILE THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTIC AL PURPOSES. ITA NO.1188(B)/2008(AY: 2001-02) AND ITA NO.1187(B) / 2008 (AY: 1999-2000) 5. FIRST APPEAL FOR AY: 2001-02 IS BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) ON THE POINT OF AGRICULTURAL INCOME . IN THIS YEAR THE ASSESSEE HAS RETURNED THE AGRICULTURAL INCOME OF RS .2.00 LAKHS.. THE AO HAS ESTIMATED THE AGRICULTURAL INCOME AT RS. 1 75 000/-AND MADE AN ADDITION OF RS.25 000/- TO THE RETURNED INC OME AS UNEXPLAINED INCOME WHICH WAS CONFIRMED BY THE CIT( A). THE AO HAS ACCEPTED THE AGRICULTURAL INCOME AT RS.1 75 000 /- OUT OF RETURNED INCOME OF RS.2.00 LAKHS WHICH IS REASONABL E. WE UPHOLD THE SAME. ITA NO.1187(B)/2008 (AY: 1999-2000) 6. IN AY: 1999-2000 THE ASSESSEE IN HIS RETURNED AGRICULTURAL INCOME OF RS.2 85 000/-. THE AGRICULTURAL HOLDING I N THE AY: 2001- 02 IS SIMILAR IN THE YEAR UNDER CONSIDERATION. AS D ISCUSSED ABOVE IN ITA NOS.3814(B)/04 & 1186 TO 1188(B)/09 5 AY: 2001-02 AGRICULTURAL INCOME OF RS.1 75 000/- OU T OF RS.2.00 LAKHS HAVE BEEN ACCEPTED. SO THE AGRICULTURAL HOLDI NG BEING SIMILAR THE AGRICULTURAL INCOME IN THE YEAR UNDER CONSIDERA TION TO THE TUNE OF RS.2.0 LAKHS IS JUSTIFIED SO THE ASSESSEE DESER VES PARTIAL ADDITION. THE AO IS DIRECTED ACCORDINGLY. 7. IN THE RESULT ITA NO.1188(B)/2008 FOR AY: 2001 -02 IS DISMISSED WHILE ITA NO.1187(B)/2008 IS PARTLY ALLOW ED AS INDICATED ABOVE. ORDER PRONOUNCED ON THE 29-01-2010. (A. MOHAN ALANKAMONY) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PLACE: BANGALORE DATED: AM* COPY TO : 1. THE ASSESSEE 2. THE REVENUE 3. CIT(A) 4. CIT 5. DR 6. GF(BLORE) 7. GF(DELHI) BY ORDER AR ITAT BANGALORE