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TMI Blog2014 (3) TMI 263X X X X Extracts X X X X X X X X Extracts X X X X ..... does not dispute the fact that the assessee’s explanation with regard to availability of fund from sale of gold jewellery cannot be rejected outright - CIT(A) has come to a conclusion that the savings from salary income itself would be sufficient to invest in the property at Noida, there is no reason why she should have disallowed 50% of the amount of investment claimed – thus, the disallowance made by the CIT(A) cannot be sustained, when she is satisfied that there was availability of fund with the assessee to make investment – the entire addition made by the Assessing Officer is set aside – Decided in favour of Assessee. Estimation of agricultural income – Held that:- CIT(A) held that the assessee himself has categorically stated that the agricultural income per year would be around Rs.3,000 per acre, and for five acres it would be Rs.15,000 - Considering this and the agricultural income disclosed for earlier and subsequent years, the same for the assessment year has been estimated at Rs.20,000 - In the absence of any material to the contrary brought on record by the assessee – there is no infirmity in the orders of the Revenue authorities on the issue – Decided against Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.7,56,000 (b) Interest accrued on FDs Rs. 1,50,000 Rs.9,06,000 Rs.11,31,0000 3. Similarly for the assessment year 1995-96 also, the assessee has not filed any return in response to notice under S.148 of the Act, and the Assessing Officer ultimately, after recording a statement of the assessee on 30.3.2003, passed the assessment order on 31.3.2003 by making the following additions- (i) Income chargeable from salary Rs. 95,000 (iii) Income from long term capital gains Rs. 8,11,500 (iv) Income from other sources (a) Unexplained investment in FDs Rs. 5,61,000 (b) Unexplained investment in property at NOIDA Rs. 5,25,000 (c) Interest earned, utilized in FDs Rs. 1,32,725 (d) Interest accrued in FDs Rs. 12,500 Rs.12,31,225 Rs.21,37,725 4. Aggrieved by the above as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of capital gains, and the grievance of the assessee is that the CIT(A) was not justified in accepting the Fair Market Value of the house property as estimated by the assessee at Rs.3,75,000. 9. In the assessment order, the Assessing Officer made additions of Rs.95,000 on account of income from salary and Rs.8,11,500 under long term capital gains and Rs.12,31,225 under the head income from other sources. The Assessing Officer noted that the assessee made deposits in different banks in his name and in the names of his family members and these deposits were stated to have been renewed after maturity and some of them were withdrawn for other investments or personal expenses and during the year 1998 the total amount lying in fixed deposit was Rs.21,53,839, and after taking into account the fact that withdrawals were stated to have been made for his personal use during the four years, i.e. in between 1994 and 1998, the Assessing Officer estimated the amounts deposited in the year 1994 at Rs.30,00,000. He considered the source of Rs.30,00,000 as below and considered each item and its source as under- (i) Sale Proceeds of the house at Garividi Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccordingly calculate the capital gains. 12. We have heard the parties and perused the material on record. Undisputedly, the assessee has not been able to submit any evidence or any material to show that the FMV of Rs.3,75,000 adopted by him, is the actual market value of the land as on 1.4.1981. The assessee has not brought on record any comparable instances of sale of property in that locality, to show that the FMV adopted by him was the actual market value. In the absence of any material to substantiate its claim, the FMV of Rs.3,75,000 cannot be accepted. In response to a specific query from the Bench, as to whether the assessee would be able to bring on record any comparable instances of sale, which could establish its claim of FMV, the learned Authorised Representative for the assessee replied in negative. When there is no material available on record, which could clearly establish the FMV of the land, in that locality, one has to go by a reasonable estimate. Hence, considering totality of facts and circumstances of the case, we are of the view that FMV of Rs.2,50,000 adopted by the CIT(A) is fair and reasonable and needs no interference. Assessee s grounds on this aspect a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mall quantities out of his agricultural income over the years and the accumulated gold and jewellery has been sold during the year and the same was invested in the house can be accepted to some extent in view of the discussion in the previous paragraphs. The reasons cited by the Assessing Officer for not accepting the contention of the appellant is not justified. One should not forget the appellant as an Army Officer and his wife were not based in the village and the activities -either agricultural or purchase and sale of gold- could have been carried out by the relatives. With salary savings of a Sr. Army Officer and agricultural income, even if the sale price of gold jewelllery are not there, the appellant would definitely had afforded to invest Rs.5,25,000 in the Noida property. The appellant has himself submitted hat due to afflux of time, there could have been some omissions and commissions here and there in explaining the sources being the sale proceeds of gold and its initial acquisition of the same long back. He has prayed that the entire source as such may not be doubted and discarded in toto. Hence, considering the facts and circumstances of the case and also in the inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer has considered the admission of the agricultural income by the appellant in subsequent and the earlier years and adopted Rs.20,000 as estimate agricultural income, I do not find any infirmity in the action of the Assessing Officer. 20. Aggrieved, assessee is in second appeal before us on this issue also. 21. We heard both sides and perused the orders of the Revenue authorities and other material on record. As can be seen from the observations of the CIT(A) in the impugned order, relevant portion of which is extracted above, the assessee himself has categorically stated that the agricultural income per year would be around Rs.3,000 per acre, and for five acres it would be Rs.15,000. Considering this and the agricultural income disclosed for earlier and subsequent years, the same for the assessment year has been estimated at Rs.20,000. In the absence of any material to the contrary brought on record by the assessee before us, we do not find any infirmity in the impugned orders of the Revenue authorities on this issue. We accordingly uphold the same, rejecting the ground of the assessee on this issue. ITA No.1290/Hyd/2013 : Assessment year 1996-97 22. The first is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment proceedings. The CIT(A), having accepted the fact the assessee s wife has received 150 tolas of gold jewellery, there is no reason why she should not have accepted the claim of the assessee in relation to the entire investment of Rs.7,56,000 instead of restricting it to 50%. In the circumstances, we feel that having accepted the source of funds, viz. sale of 150 tolas of gold, the entire investment of Rs.7,56,00 should be treated as having been explained. We accordingly, modify the order of the CIT(A), and delete the entire addition made by the Assessing Officer, allowing the grounds of the assessee on this issue. 26. The next issue involved in this appeal relates to estimation of agricultural income of the assessee at Rs.20,000, as against Rs.50,000 per annum claimed by the assessee. 27. We heard both sides and perused the orders of the Revenue authorities and other material on record. This issue is identical to the one raised by the assessee in his appeal for assessment year 1995-96. Therefore, for the reasons discussed in para 21 herein above, in the context of the assessee s appeal on this issue for the assessment year 1995-96, we do not find any infirmity in the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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