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TMI Blog2015 (10) TMI 1075X X X X Extracts X X X X X X X X Extracts X X X X ..... to furnish proper details of his savings and earnings in previous years which in normal cases are being rarely maintained by the agriculturists as their income is exempt from tax. Therefore, in the light of the facts and circumstances as well as nature of source of income of the assessee and estimates made by CIT(A) it will be justifiable to reduce the addition from ₹ 6,37,000/- to ₹ 1,00,000/- only and the same is confirmed. The assessee gets part relief. - Decided partly in favour of assessee. - IT(SS) A No.385/Ahd/2011 - - - Dated:- 9-9-2015 - Shri Kul Bharat, JM, Manish Borad, AM. For The Appellant : Shri P. M. Mehta, AR with Shri G. M. Thakore, AR For The Respondent : Shri Sanjay Agrawal, CIT, DR ORDER PER Manish Borad, Accountant Member. This appeal of the assessee is against the order of CIT(A)-III, Ahmedabad vide his order dated 13/5/2011 for AY 2003-04. The assessment was framed by ACIT, Central Circle-2(4), Ahmedabad vide his order dated 31st December, 2010. The concise grounds of filed by the appellant are as under :- 1. On the facts and in the circumstances of the case of the appellant, the learned CIT(A) has erred in confirm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirmed the addition of ₹ 6,37,000/- in place of ₹ 11,33,682/-. The basis taken by the CIT(A) can be understood by the observations made in his appellate order which reads as below :- 4.1 I have considered the submissions of the appellant. I agree with the AR that normally there cannot be any addition on account of opening capital balance. However, this cannot be accepted as universally true in all the cases. If the appellant has been filing the balance sheet and the return of income of the earlier assessment years and the opening balance in the year under consideration represent the closing balance of immediately preceding year, then under no circumstances the addition of the opening balance can be made in the year under consideration, even if the appellant is not able to explain the source thereof. However, if the appellant has not been filing any return of income and the first return of income is filed by him in response to notice under section 153A of the income tax act after the date of search and the source of a particular investment is claimed to be out of the income shown in earlier years (beyond seven years) mainly on the ground that no action is possible t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ural production yield for last four years with the valuation of agricultural produce at minimum support price, possible production of bajra and jawar as per the statistics of the Government and estimated savings, which possibly could have been made by the assessee after incurring household expenses and held that in my opinion, prior to assessment year 2003-04 the net agricultural income of the appellant cannot be more than ₹ 76,212. Further it was stated by the AR that the appellant has three dependent family members. It would be reasonable to estimate ₹ 5000/- per month towards the household expenses of the appellant. In other words, the appellant could have saved only ₹ 16,000 (76000-60000) during a year upto assessment year 2003- 04. From 1994 to March 2002 in eight years, the appellant could have saved ₹ 16,000 x 8 = ₹ 128,000. As stated earlier, the appellant himself has shown investment in the policy of LIC to the extent of ₹ 104,152 out of the saving till 31/3/2002. This means, the appellant was left with only ₹ 24,000 approximately for further investment as on 31/3/2002. As against this, the appellant has shown cash in hand to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... balance, the appellant preferred an appeal before the learned CIT(A). The appellant submitted a fairly detailed submission and made oral arguments too from time to time in the course of hearing before the CIT(A). However, the ld. CIT(A) has sustained the addition of ₹ 637,000 and granted relief for the balance on this score. (iii) It is respectfully submitted that the appellant has submitted a fairly detailed written submission dated 22nd March, 2011 before the ld. CIT(A). Further, it was emphasized that in conformity with the statement recorded under section 132(4) of the Act, in the course of search proceedings at answer No.9 the appellant had categorically stated that he has maintained regular books of accounts and further such books of accounts were also submitted before the learned AO during the course of assessment proceedings and hence the AO s contention to the effect that appellant has never maintained any such accounts is devoid of any merits. (iv) In this context, the appellant begs to submit that the appellant during the course of assessment proceedings vide letter dated 21.12.2010 did furnish the explanation along with the breakup of the said balance and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment in the land from the year 1987 till December, 1994 and the total investment in land so made for ₹ 337,888. On such verification and on the basis of documents, the ld. CIT(A) has accepted the contention of the appellant that he had capital of ₹ 337,888/- as on 31st March, 2002. Similarly, he has accepted the investment of ₹ 30,000 in animals as on 31st March, 2002. Vide para 4.3 he has accepted the figure of LIC premiums for ₹ 1,04,152/- till 31st March, 2002 and the figure of bank balance. However, only with reference to balance cash on hand i.e. 637,916/- as on 31st March, 2002, the learned CIT(A) has viewed the explanation of appellant differently. While doing so the ld. CIT(A) has estimated the agricultural production on estimated basis adopting the estimated sale-price of the crops sold and has allowed set off of 35% of expenses having incurred by the appellant towards cost of seed cultivation etc. and has proceeded to work out the agricultural income at ₹ 76,212/- only. Besides, the ld. CIT(A) has estimated household expenses of ₹ 5,000 p.m. ignoring the vital facts that the assessee is an agriculturist having three dependant family mem ..... 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