2019 (1) TMI 411 - HC - Income Tax

Estimation of agricultural income - Tribunal confirming the estimation made by AO in respect of agricultural income at 25% on the agricultural income - Held that - The documents have been produced on 31.12.2007. The order of the Assessing Officer was passed on 28.12.2007. There is even a noting in the order of the Assessing Officer that when the matter was listed on 18.12.2007, an adjournment was sought for upto 24.12.2007. That on 24.12.2007, neither the assessee appeared nor he complied with the requirements as per the communication dated 11.12.2007. Secondly, the so-called material was not produced before the impugned order was passed by the Assessing Officer. He has since passed the order on 28.12.2007. Therefore, the Assessing Officer cannot be blamed for non-consideration of the material. The assessee has deliberately not appeared before the Assessing Officer or furnished the documents. RTC produced was for the year 2007-2008, which was not relatable to the assessment year in question. Therefore, even if such material would have to be reconsidered, the same would not aid the appellant,under any circumstances. No reason as to why an additional opportunity should be granted to the assessee at this stage. We have considered the question of remanding the matter. However, keeping in view the conduct of the assessee and the futility of reconsidering the material before us, the same would not serve any purpose. We are of the view that the Tribunal was justified in confirming the estimation made by the Assessing Officer in accepting only 25% of the total agricultural income declared by the assessee. - Decided in favour of revenue

Summary

Issues:
1. Dispute over addition of income from other sources to the return of income.
2. Appeal challenging the estimation of agricultural income and levy of interest under Sections 234 A, 234 B, and 234 C of the Act.

Analysis:
1. The assessee, an individual, filed a return of income for the assessment year 2005-2006, declaring total income and agricultural income. The Assessing Officer added amounts from other sources to the return, leading to a total income of Rs. 40,69,003. An appeal was filed before the Commissioner of Income tax (Appeals), partially allowing the appeal. The matter was then taken to the Tribunal, which dismissed the appeal, resulting in the present appeal by the assessee.

2. The appeal was admitted to consider substantial questions of law regarding the estimation of agricultural income and the levy of interest under Sections 234 A, 234 B, and 234 C of the Act. The appellant's counsel argued that material proving ownership of 15 acres of land was not considered by the Assessing Officer. However, the revenue's counsel disputed this claim.

3. Upon review of the material presented, it was found that the documents were submitted after the Assessing Officer's order was passed, and the material was not produced before the order. The RTC produced was also for a different year, not relevant to the assessment year in question. Due to the assessee's failure to appear before the Assessing Officer or furnish the necessary documents, the Assessing Officer could not be faulted for non-consideration of the material.

4. The Court concluded that there was no reason to grant an additional opportunity to the assessee at that stage. Considering the conduct of the assessee and the futility of reconsidering the material, the Court upheld the Tribunal's decision to confirm the estimation of agricultural income at 25% of the total declared by the assessee. Consequently, the substantial question of law was answered in favor of the revenue, and the appeal was dismissed.