9911796707
TMI Blog1989 (5) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... Ram Gopal (bigger HUF) consisted of Sri Ram Gopal, his wife Smt. Ram Sakhi and his two sons Ramendra Kumar and Mahendra Kumar (present assessees). The order dt.6th July, 1970of the ITO for asst. yr. 1966-67 establishes the fact that a partial partition of the family took place on3rd Nov., 1964. Thereafter, assessments of Ramendra Kumar and Mahendra Kumar have been made as smaller HUFs with their respective wives Smt. Daya Agrawal and Smt. Saroj Rani and their children. S/Shri Ram Gopal, Ramendra 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, Teshs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er agricultural lands were also purchased on22nd Sept., 1976,30th July, 1979, etc. and thereafter converted for the use of the crusher. There was another area of 19 Biswas 17 Biswansies of agricultural land in village Salawatnagar which was in the sole occupation of Ramendra Kumar which he sold on17th July, 1981for Rs. 4,500 to one Nisar Ahmed. Details and Khasra, Khataunies, etc., of all these lands had been furnished by the assessees before the income-tax authorities. No regular accounts have been kept by the assessees in respect of their agricultural income. 3. On6th Sept., 1985, a search took place at the business and residential premises of Mahendra Kumar when books of account and other documents were seized. In the firm Babu Ram Ram ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at 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) . . . ) . . Rs. 6,000) 5,000 15,000 1980-81) . . . ) . . Rs. 8,000) . . 1981-82) . . . ) . . Rs. 10,000) .. . 1982-83 24,000 17,000 20,000 7,800 1000 3,500 . . . . (20,500 + 3,500) (15,000 + 2,000) (4,200 +3,600) . . . 1983-84 40,000 23,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accepted the same on a protective basis. 8. For the asst. yr. 1983-84 on the income-tax side the ITO took Rs. 20,000 as income from freehold 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 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and commission business in such items. The statement dt.10th Nov., 1986and Mahendra Kumar was that these were individual and not HUF business which were carried on out of individual agricultural income. The factum of the existence of prior to the raid finds corroboration from the seized pawned articles which bore slips of the customers. Seized copy Nos. 40 to 51 contained entries pertaining to commission income of individuals. There were nothing therein regarding booking of orders and supply thereof. Similarly Annexure VI containing loose papers contained entries regarding loans and change of interest in pawning from various persons. The slips showing pawning transactions were also found at the residence and not in the place of business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 assessees as on 1st April, 1981(details mentioned earlier) over the previous 5 years appears to be quite reasonable, considering the area of 58 bighas 5 biswas (51 bighas 5 biswas + 7 bighas) and 1/3rd share in the net agricultural income after allowing household expenses and other outgoings. In the later years the income disclosed from 1/2 share appears equally reasonable. An additional reason is that for similar land in the same village Shahjehanpur, Tehsil Nagina owned by S/Shri Ram Niwas, Ram Avtar and Anil Kumar (43 bighas 19 biswas) the Department had accepted a r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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