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TMI Blog2018 (4) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 set aside the matter to the ld. CIT(A) to decide the matter on merits and the present matter before us arises from the said order of the ld. CIT(A) so far as Revenue's appeal is concerned. 3. The assessee has preferred a cross-appeal against the same order of the ld. CIT(A). These appeals were heard together and since the issues involved and the facts are similar, these are being disposed together in this consolidated order. 4. First we take up the appeal of the Revenue in ITA No.109/Alld/2015. Grounds No.1, 2 and 3 relates to the fact that the ld. CIT(A) has deleted the additions of Rs. 24,70,000/-; Rs. 45,00,000/-; Rs. 99,22,950/- and Rs. 1,63,16,892/- being investment in FDRs on the premise that investments in the same have been made out of agricultural income. The grievance of the Revenue pertains to the fact that no detail of agricultural land was produced by the assessee. 5. The AO in his Remand Report dated 30.09.2014 has also mentioned that the assessee has failed to establish the details of the land holdings. It is the case of the assessee that as regards the details of agricultural holdings and its proof, the same were furnished before the CIT(A) as well as before t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /c have been made from the Agricultural Income and other income like Teh Bazari, House Rent etc. This fact has been stated by the appellant in page 6 of this order that Returns were also filed in the HUF and Individual status for A.Y. 2001-2002 and 2002-2003 on 21-03-2003 and along with the return for Assessment Year 2001-02 the following details were also filed-: A.Y. 1989-90 to 1996-97 1 - Statement of Income 2 - Capital Account A.Y. 1997 to 2002-03 1- Statement of Income 2- Capital Account 3- Statement of Affairs 4- Detail of Income from Interest on Saving Bank A/c, MIP income, Indira Vikas Patra and interest on Bank FDRs for the Income Tax Return for A.Y.2001-02 the Assessing Officer had passed the order u/s 143(3)on dated.17-03-2004 of A.Y. 2001-02 (HUF), in the case of the appellant, the Assessing Officer has stated. However for safeguard the interest of the revenue the assessment is made on protective basis on income of Rs. 27,19,450/- and agricultural income of Rs. 14,46,870/-. Issue notice of demand and challan. A.Y. 2001-02 (Indl), in the case of the appellant, the Assessing Officer has stated. However for safeguard the interest of the revenue th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ....the assessee enjoys income mainly from agriculture. Besides agricultural income the assessee also enjoys income from Teh bazari and rent income. The assessee produced the documentary evidences in support to its claim. The documents were examined. No adverse inference is drawn and the income return is accepted.... ...Assessed accordingly on a total income of Rs. 13,04,570/- and agricultural income of Rs. 24,50,000/- is to be taken for the rate purposes.. Issue notice of demand and chaltlan.. charge interest u/s 234A, 234B, & 234C as per rules... During the course of the appellate proceeding the copy of year-wise ledger A/c and year-wise agricultural income 96-97 onwards showing details like agricultural produce and to whom the agricultural produce was sold etc. alongwith the evidences of identity of persons were sent to the Assessing Officer Shri Rajesh Yadav, DCIT for Remand and in his Remand Report dated 30- 09-2014 no contrary remarks regarding the identity of these persons and agricultural produce has been given by the Assessing Officer. Rather Shri Rajesh Yadav in A.Y. 2010-11 had accepted the agricultural income and other income from The Bazari and income from House r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 01.08.200 5,93,000 15.03.20 6,67,303 My predecessor CIT(A)-III, Lko, did not allow the credit of Rs. 45,00,000/- but after considering all the facts of the case it is seen that the original investment was of Rs. 5,00,000/- and on conversion it had becomes Rs. 5,93,000/- as per the Bank Record, I also hold that the source of all the deposits are agricultural income and income from Teh Bazari and House Rent as stated by me in my finding for issue No. 1. Hence, after considering the withdrawals from SB a/c it has been proved that FDRs has been made out of the withdrawals from the bank account and the interest portion on this FDRs has been added hence Rs. 45,00,000/- is hereby deleted but the interest from SBI, Kunda Branch of Rs. 9,90,255/- is to be added Therefore, these issues are partly allowed." 7. With regard to the deletion of addition and relief of Rs. 99,22,950/-, the findings of the ld. CIT(A) are as under:- "I have perused the facts stated in the assessment order, Remand Reports, CIT(A)'s order ted 31-03-2008 and IT AT order dated. 14-06-2010 and as well as facts stated in the assessee's submission and Rejoinder dated 30-10-2014. Regarding this is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posit is agricultural income and other income like Teh Bazari, House Rent etc. as stated in my finding for issue No.1 above." 8. With regard to deletion of addition of Rs. 1,63,16,892/-, the findings of the ld. CIT(A) are as under:- "I have perused the facts stated in the assessment order, Remand Reports, CIT(A)'s order 31-03-2008 and ITAT order dated. 14-06- 2010 and as well as facts stated in the assessee's submission and Rejoinder dated 30-10-2014.The CIT (A) is not considering that the various investments were fully covered by income derived from agriculture of Rs. 16316892/-, Rs. 2158200/-, 1450053/-, 1974659/-, Rs. 5752000/- and Rs. 761319/- are not at all justified as they have been made out of such agricultural income either of earlier years accumulation or amount of such agricultural income for the year: U.P. Singh (Block Assessment) THE POSITION IS SUMMARIZED REMAND REPORT)I, NUCB SADAR BRANCH BELOW - (FDR'S AS PER Total of all FDRs 1,63,16,892 Covered by withdrawals 1,33,05,000 Unexplained Chilbila Branch 30,11,892 Total of all FDRs 19,74,659 Less Reinvestment 2,89,659 Net 16,85,000 Covered by withdrawals 16,85,000 Unexplained N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rough evidence as to how the land holding of the assessee is proved. The ld. A.R. of the assessee invited our attention to pages 208,209, 210 and 211 of the paper book wherein the copy of writ petition referred to above is there and documents annexed proves the land holding of the assessee which are made as part of this order as Annexure "A", Annexure "B", Annexure "C" and Annexure "D". 12. We also find annexed in the paper book the copy of assessment order passed by the Assessing Officer, Central Circle-2, Lucknow under section 143(1) of the Act for assessment year 2001-02, order dated 12/1/2004 assessing the agricultural income at Rs. 6,48,970/-. We also find copy of the assessment order passed by Assessing Officer, Central Circle-2, Lucknow, under section 143(1) for Assessment year 2001-02 (HUF status) dated 12.01.2004 assessing agriculture income at Rs. 14,46,810/-. We also find in the paper book annexed the copy of the assessment order passed by Assessing Officer, Central Circle-2, Lucknow, under section 143(3) for Assessment year 2002-03 (Ind.) dated 18.03.2005 assessing agriculture income at Rs. 5,47,340/-. There is also copy of the assessment order passed by Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort, has accepted assessee's claim of agricultural income in the later year. We, therefore, find no infirmity with the findings of the ld. CIT(A) and grounds No.1 to 3 of the Revenue's appeal are dismissed and the relief given by the ld. CIT(A) to the assessee sustained. Accordingly, grounds No.1 to 3 are dismissed. 15. With regard to ground No.4, the issue is dealt with by the ld. CIT(A) at pages 106 to 108 of his order. This ground is general in nature and we have perused the issue and we find that total undisclosed income assessed by the Assessing Officer in block assessment order was Rs. 14,97,51,700/-. The same was on account of undisclosed investment in bank FDRs and interest accrued, saving bank and agricultural receipts. The ld. CIT(A) has reduced the same to Rs. 1,29,52,434/-. It was explained before the Assessing Officer as well as the ld. CIT(A) that all deposits in FDRs were out of agricultural income. Once agricultural income has been accepted, question of making addition on account of unexplained investment does not arise. The ld. CIT(A) has dealt with the deposits in FDRs and interest accrued separately. Out of total addition made, the amount to the extent of Rs. 1, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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