9911796707
TMI Blog1989 (5) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... endra Kumar and Mahendra Kumar earlier owned one-third share each in their individual capacities in the following agricultural lands: S. No. Area of Land Location Kind of holding 1. 51 Bighas 5 Biswas Khasra Nos. 77 to 81, Village Afzalgarh, Teshsil Nagina, Distt. Bijnor. Freehold (5 plots) 2. 7 Bighas Village Sadashivpur Ganwari, Tehsil Nagina, Distt. Bijnor. Khasra Nos. 104 and 105. Leasehold (2 plots) After the death of Sri Ram Gopal on 10th May, 1982, his own 1/3rd share in the aforesaid lands passed on to S/Shri Ramendra Kumar and Mahendra Kumar equally, vide mutation order dt.10th July, 1982in terms of the Will dt.3rd March, 1982of Sri Ram Gopal. Thereafter, the share of S/Shri Ramendra Kumar and Mahendra Kumar in these lands became 1/2 each. The fact that these lands were held by these assessees in their individual capacities stands accepted by the Department vide order dt.7th March, 1984under s. 61 of the ED Act, 1953. The plot Nos. 104 and 105 measuring 7-1 Bighas in Village Sadashivpur Ganwari were taken on lease by these assessees from the Irrigation Khand Moradabad-III, Upkhand Dha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in pawning of silver bullion and ornaments besides income from commission in similar goods. No accounts were kept by the assessees for these sources of income also, nor any returns filed in respect of this source of income prior to 1982-83. Since in the account books no entries appeared in respect of "girvi" income in individual capacity, the ITO accepted the incomes shown only on a protective basis. He held that the assessees were doing money-lending business as individuals and that it was not an HUF business. 6. The estimates of income as per the assessees and the income-tax authorities are as follows: Year Agricultural income Business income Savings As per assessees As per ITO As per AAC As per assessees As per ITO As per AAC As per assessees As per ITO As per AAC (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 1977-78) . . . ) . . Rs. 2,000) . . 1978-79) . . . ) . . Rs. 4,000) . . 1979-80) . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old agricultural land and Rs.3,000 from the leasehold agricultural land, total Rs. 23,000. Since, according to the assessees, such income was Rs. 40,000 the ITO made Rs. 17,000 (Rs. 40,000- Rs. 23,000) as unexplained addition. He took Rs. 7,000 as income from business on a protective basis and added Rs. 25,200 as difference in capital (Rs. 57,900 - 22,700). Thus assessment was completed on a total income of Rs. 42,200 (Rs. 7,000 + Rs.25,200 + Rs. 17,000) as against the declared income of Rs. 7,000. The learned AAC took this figure at Rs. 36,700 as explained above i.e., Rs. 7,000 + Rs. 19,700 (Rs. 57,900 - Rs. 38,200) + Rs. 10,000 (Rs. 40,000 - Rs. 30,000). 9. For the asst. yr. 1984-85 the assessees declared taxable incomes of Rs.10,400 from pawning and commission business which was assessed by the ITO again on a protective basis. The ITO made an unexplained income addition of Rs. 23,000 in respect of agricultural income (Rs. 46,000 - Rs. 23,000) and completed the assessment at a figure of Rs. 33,400 (Rs. 23,000 + Rs. 10,400). The AAC reduced it to Rs. 26,400 (Rs. 46,000 - Rs. 30,000 + Rs. 10,400). 10. In the case of Mahendra Kumar HUF the declared and assessed incomes were as f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l capacities were also reasonable in quantum and are accepted. 12. Next we come to the question of incomes from agriculture in individual as well as HUF status for which though no regular accounts were mentioned by the assessees but the sale proceeds were entered in "dasti" books. "Dasti" books/copies for the period July, 1984 to Sept., 1985 relating to asst. yrs. 1985-86 and 1986-87 were seized. "Kaccha"/"Puccka" purchase/sale vouchers (rough) formed part of Annexure VI. The assessees had filed the copies of the Khasras and Khataunies giving the ownership, areas of land and the crops grown (sugarcane, paddy, dhan and lohi). The land is well irrigated by tube well canal. In respect of leasehold plot Nos. 104 and 105 in Village Sadashivapur Ganwari, copies of land lease receipts were also filed. Prior to the death of Ram Gopal the shares of the assessees in the individual agricultural lands was 1/3rd each and thereafter, as already mentioned earlier, their share became one half each. The crops grown were cash crops, the prices of which were continuously rising. The lands are well irrigated and cultivation is by modern methods. The opening capital of Rs. 30,000 as declared by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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