2012 (8) TMI 923 - AT - Income Tax

Summary

Issues involved: Appeal filed by assessee regarding addition of agriculture income and loan amounts, and confirmation of household expenses addition.

Issue 1: Agriculture Income Addition

The Assessing Officer estimated agricultural income at Rs. 72,000 instead of the disclosed Rs. 2,26,888, taxing the balance as undisclosed income. The CIT(A) restricted the addition to Rs. 60,000, considering previous year's income. ITAT held that the disclosed income should be accepted, as supported by detailed crop-wise receipts and production records. The estimated fixation of income was deemed unnecessary, and the ground was allowed.

Issue 2: Loan from Smt. Chandrakanta Devi Jain

Assessee showed an unsecured loan of Rs. 2,10,000 from Smt. Chandrakanta Devi Jain. The Assessing Officer invoked section 68 due to lack of address and PAN information in the confirmation. Despite the lender's affidavit and repayment evidence, the CIT(A) affirmed the addition. ITAT found the loan genuine based on the lender's documents and repayment proofs, directing deletion of the addition.

Issue 3: Loan from M/s. Suparshav Industries

A loan of Rs. 7,00,000 from M/s. Suparshav Industries was questioned by the Assessing Officer for lack of certain information. The CIT(A) upheld the addition under section 68. ITAT noted the PAN information and income tax returns of the lender, directing the assessee to provide details of loan repayment for verification, allowing the ground for statistical purposes.

Issue 4: Household Expenses Addition

Assessee's household withdrawals were deemed insufficient by the Assessing Officer, who estimated higher expenses and added Rs. 65,929 to the income. The CIT(A) confirmed this addition. ITAT upheld the estimation as reasonable, dismissing the ground. The appeal was partly allowed for statistical purposes.