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TMI Blog2016 (11) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... raid - accumulation of agricultural income - Held that:- No books of account were maintained by the trust and the trust was also found to be an unregistered one and no sale bills were produced by the assessee to show that the agricultural income from the said lands amounted to ₹ 12 lakhs. The burden was on the assessee to prove that ₹ 12 lakhs got accumulated out of the agricultural income from the trust lands, by producing supportive documents, especially, when the lands were leased out to third parties. Therefore, the Tribunal erred in holding that the Revenue failed to produce material on record that the sum of ₹ 12 lakhs was out of the accumulation of agricultural income from the trust lands of the assessee. When the brothers and relatives of the assessee have categorically stated that they have not advanced any money to the assessee nor they have the capacity to do so, the Tribunal erroneously, contrary to the facts, stated that the brothers have accepted the advance amounts paid by them and that they have also established their source. The said finding is perverse. Therefore, the conclusion of the Tribunal that the assessee did not possess any undisclose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee for the source of deposits was that it was out of a sale advance of ₹ 14 lakhs received from one K. Kannappan towards the sale of a shop located in Cumbum Town, jointly owned by the respondent-assessee and his brother, for a total consideration of ₹ 23 lakhs, as per sale agreement dated November 20, 2004. The Assessing Officer, held that the agreement seized during the search is not a genuine one and treated ₹ 13.35 lakhs as unexplained investment of the assessee and treated as undisclosed income of the assessee for the block period. The Assessing Officer, further concluded that the creditors of the assessee could not have advanced the amount as he has not explained the various other transactions and that the said property offered for sale may not fetch the agreed sale consideration. The Assessing Officer treated ₹ 20,66,337 seized from the assessee's residence, at the time of raid, as unexplained and undisclosed income of the assessee as the assessee did not properly account for the said amount. The Assessing Officer determined the tax payable under section 113 at ₹ 22,45,583. As against the said order, two appeals, one in individual capacity a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer rightly suspected the genuineness of the said agreement. The signature of Kannappan found in the sale agreement and signatures found in the sworn statement filed before the authorities were different and in fact, he had admitted that he did not affix his signature in the agreement as the agreement was not presented to him for his signature. Therefore, the Assessing Officer rightly found that the agreement was not legally valid as it was not signed by both parties. Moreover, the property, which was sought to be sold was a property measuring about 29 x 11 sq. ft. and it was found to be in a dilapidated condition in Cumbum Town, which is a semi-urban town. On personal visit, the Assessing Officer found that the building was a very old one with brick walls plastered with mud and lime mortar, with no doors and windows available, except one folded plate shutter. The total measurement of the property was only 333.5 sq. ft. The market value of the property, as per the recent enquiry, revealed that it would not exceed ₹ 2.5 lakhs, as on date. Therefore, the Assessing Officer found that in the year 1994, when the agreement was entered into, the value of the property would have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee and the finding of the Assessing Officer that ₹ 13.35 lakhs is undisclosed income is restored. 10. As far as the second substantial question of law is concerned, the sum of ₹ 20.66 lakhs in cash, was seized during the raid on November 24, 1995 and the amount was found in different covers with certain notings on them showing contract payment, percentage of premium reduced thereon, etc. The contention of the assessee was that the said amount was out of his agricultural income and loans received from brothers and close relatives. 10. In the statement filed along with the return, the assessee furnished the following details of sources in order to explain the cash found ₹ 20,66,637. (Rs.) Interest on FDRS 5,420 Interest on FDRS assessable in the assessment year 1996-97 26,073 Sale proceeds of jewellery 1,92,000 Loan from his brother Mr. Venkittu 4,00,000 Income from house property 60,000 Agricultural incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le bills of agricultural produce and on personal visit, rightly found that the agricultural income from the trust lands would not be more than ₹ 1 lakh, after meeting the expenses of cultivation. Therefore, the sum of ₹ 12 lakhs, said to be agricultural income derived from trust lands, amounts to undisclosed income. 11. Moreover, the sum of ₹ 20,66,637 was found kept in different covers with certain notings. Considering the status of the assessee as a Deputy Superintending Engineer in National Highways Department, Madurai, it was found that this would amount to undisclosed income as the assessee is a salaried employee of the State Government and his take home salary was ₹ 8,125 as per his own statement dated November 25, 1995. Therefore, the Assessing Officer found that no proper explanation had been given by the assessee by producing documents. Even with regard to the bank receipts for ₹ 50,000, ₹ 4,000 and ₹ 20,000 standing in the name of the assessee and his wife, the assessee did not adduce any evidence with regard to the source for the aforesaid deposit. 12. The finding reached by the Tribunal that the Revenue was not able to bri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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