9911796707
TMI Blog2003 (2) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... of the irrigated land measuring 42 Kanals. As per the Government record/Girdawari, the assessee had cultivated wheat and paddy. According to the Assessing Officer, it was not possible to earn the net agricultural income of Rs. 1,19,840, as it has been shown by the assessee. As per the books of M/s Anand Trading Company, the assessee has sold wheat and paddy amounting to Rs. 96,383. According to the Assessing Officer, the assessee might have spent 50% of the gross sales proceeds as expenses. He, therefore, took the view that the gross sales proceeds of wheat and paddy was less than Rs. 1,19,840. The Assessing Officer observed that agricultural operation included the cost of tilling the lands and expenses on seeds, fertilizers, pesticides, e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount, the total amount shown in this a/c for the year 1998-99 is at Rs. 96,383. A perusal of copy of account of Sh. Sat Pal Mehta in the books of M/s. Anand Trading Co. for the years 1997-98 and 1998-99 filed during the appellate proceedings shows that this amount of 49,247 credited to the account of Sh. Sat Pal Mehta is not on account of any sale of agricultural produce, as is clear from the narration given in the copy of account. In view of the above, it is clear that this amount of Rs. 49,247 has nothing to do with the agricultural income shown by the appellant in its return of income. Therefore, in view of the above facts and circumstances, the appellant's contention regarding agricultural income to the extent of Rs. 1,19,840 earned dur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Trading Co. (commission agent) for the period 1-4-1998 to 31-3-1999. Similarly, the copies of accounts from the assessment years 1995-96 to 1998-99 were also produced before me. The assessee was showing agricultural income on the basis of receipt irrespective of the sale proceeds. This position has been accepted by the Department for the immediately preceding year. In the order dated 11-10-2001 for the assessment year 1998-99, the learned CIT(A) has accepted that the income was being shown on receipt basis. The Deptt. has not challenged the said order of the CIT(A) in further appeal. During the assessment year under consideration, the assessee has received the agricultural income at Rs. 1,19,840, the details of which are as under :-- (i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment order dated 4-10-2001 passed under section 143(3) of the Act, the Assessing Officer has estimated the total household expenditure at Rs. 98,657 as against the withdrawals of Rs. 65,000 shown by the assessee. 9. On appeal, the learned CIT(A) reduced the addition from Rs. 33,600 to Rs. 18,600 observing as under :-- "2.5 As far as the household expenses is concerned, the Assessing Officer has made an addition of Rs. 33,600 as unexplained expenses under section 69C of the Income-tax Act on the ground that the appellant's total expenditure on household expenses comes to Rs. 98,657 and against which the withdrawals available with the appellant are only to the extent of Rs. 65,000. The Assessing Officer while making this addition ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee. The Assessing Officer made the addition of Rs. 15,500 which was confirmed by the CIT(A). 9.1 In the Second appeal, the Tribunal deleted addition vide its order dated 29-11-2002 in I.T.A. No. 20 (Asr.)/2002. The Tribunal observed that there was no basis for making the addition. Thus, keeping in view the past history as well as the submissions of the learned counsel for the assessee, I am of the opinion that the addition sustained by the CIT(A) is on higher side, particularly, when he has not assigned any cogent reasons while sustaining the addition of Rs. 18,600. In this case, the addition of Rs. 10,000 will meet the ends of justice. The assessee gets a further relief of Rs. 8,600. 10. Ground No. 4 relates to the charging of i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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