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TMI Blog2009 (8) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer completed the assessment by order dated September 20, 1998, adding a sum of Rs.44,75,930 to the income of the assessee as unexplained investments under section 69 of the Income-tax Act, 1961 (hereinafter referred to as " the Act" ). 4. It will be necessary to take note of the fact that during the financial year in question a sum of Rs. 68,53,343 was deposited in the Savings Account No. 2520 of the assessee maintained with the State Bank of India, Abhayapuri Branch. The assessee explained the aforesaid deposits by contending the same to be his accumulated agricultural income from the year 1981 onwards. In support the assessee produced all his books of account right from the financial year 1978-79 and had also produced a number of documents and certificates from the concerned State Government officers and other authorities in support of his agricultural income. The assessee also filed before the Assessing Officer his year-wise statement of affairs starting from the year 1978-79. The Assessing Officer took the view that as it was the assessee' s case that the books of account were under seizure in connection with a case registered by the Vigilance and Anticorruption Departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... those involved in Income-tax Appeal No. 21 of 2006. The appellant-assessee in the aforesaid two cases is the wife of the appellant in Income-tax Appeal No. 21 of 2006. The additional facts that will be required to be noticed is that the unexplained investments added by the Assessing Officer to the taxable income of the assessee consisted of bank deposits as well as investments in land and vehicles. While for the assessment year 1994-95 the assessee had tried to explain the aforesaid unexplained investments on the basis of accumulated agricultural income of her own, in Income-tax Appeal No. 20 of 2006, pertaining to the assessment year 1995-96, a part of the unexplained deposits, i.e., to the extent of Rs. 8,50,000 was sought to be explained by the assessee by means of a cash loan obtained by her from her husband, i.e., the appellant-assessee in Income-tax Appeal No. 21 of 2006. In both the aforesaid two cases the primary as well as the first appellate authority proceeded on a similar reasoning as in Income-tax Appeal No. 21 of 2006. 7. Aggrieved, the Revenue had filed Income-tax Appeal No. 164(Gauhati)/2000 (out of which Income-tax Appeal No. 21 of 2006 has arisen) as well as Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has contended that the Assessing Officer had wrongly placed reliance on the judgment of the apex court in S. N. Namasivayam Chettiar [1960] 38 ITR 579 in rejecting the books of account of the assessees and further that the Assessing Officer had accepted the agricultural income of the assessee in Income-tax Appeal No. 21 of 2006 to the extent of Rs. 5,25,848 which were reflected in the very same books of account. Similarly, in the case of the assessee in Income-tax Appeal No. 22 of 2006 the Assessing Officer had accepted the agricultural income to the extent of Rs. 3,69,960 reflected in the books of account of the assessee. The agricultural incomes of the assessees accepted by the Assessing Officer pertains to the very same year involved in assessment proceedings under the Income-tax Act. Dr. Saraf has, therefore, argued that the acceptance of agricultural income of the assessees for a particular year and rejection of accumulated agricultural income for the previous years is wholly incorrect. It is the further contention of Dr. Saraf that the Assessing Officer did not disbelieve that the assessees had agricultural income nor any dispute was raised with regard to the quantum thereof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessment year 1994-95 the assessees had filed copies of the assessment under the Assam Agricultural Income-tax Act which was duly accepted by the Assessing Officer and income from agriculture as assessed by the authorities under the local Act were excluded while making the additions to the taxable income of the assessees. In this regard, Sri Bhuyan has also referred to the provisions contained in sections 6 and 19 of the Assam Agricultural Income-tax Act under which there is a duty and obligation on the part of an assessee earning agricultural income to file returns to enable the authority under the Assam Agricultural Income-tax Act to make assessments of agricultural income. It is further contended by Sri Bhuyan that the aforesaid provisions of the Assam Act were not followed by the assessees though they claim to have income from agriculture to explain the unexplained investments found by the Assessing Officer under the Income-tax Act. 14. We have considered the rival submissions advanced on behalf of the parties; the orders passed by the primary as well as the learned first appellate authority; the documents and certificates brought on record before the said authoritie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of account of the assessee. The case projected by the assessee, therefore, ought to have been considered on its own merits. However, the Assessing Officer had no occasion to do so. 17. In appeal, the learned Commissioner (Appeals) proceeded on the basis that no adverse conclusion regarding agricultural income of the assessee or the quantum thereof was recorded by the Assessing Officer and, therefore, it could be taken to have been established that the assessees had agricultural income the quantum of which was as claimed by them. 18. We do not think that the manner in which the learned Commissioner (Appeals) had proceeded is correct. The absence of any adverse finding of the Assessing Officer either with regard to availability of agricultural income or the quantum thereof was but natural in a situation where the Assessing Officer, after rejecting the books of the assessees did not proceed any further in the matter. It is our considered opinion that the correct approach that should have been adopted by the learned Commissioner (Appeals) was to consider the acceptability or otherwise of the assessees' claim in the light of all relevant facts and circumstances as evidenced by the mat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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