9911796707
TMI Blog1996 (1) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case, the Income-tax Officer was justified in issuing notice under section 148 of the Income-tax Act and taking action under section 147 accordingly ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding additions made to the income declared on the ground of lesser agricultural expenses shown as income from other sources and rejecting the assessee's contention that this could be only added as being the agricultural income of the assessee ? The Tribunal, for the assessment year 1977-78 (RA No. 106/JP/85), also referred the following question of law for the opinion of the High Court : " Whether, on the facts and in the circumstances of the case, the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee preferred appeals against the assessment order passed by the Income-tax Officer, "C" Ward, Hanumangarh. As all the six appeals of the assessee related to the dispute of the assessee's income from agricultural land, the Appellate Assistant Commissioner, Bikaner Range, Bikaner, decided all these appeals by a common order dated March 7, 1984. Aggrieved with the order dated March 7, 1984, the assessee preferred six appeals before the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur. The Tribunal, by its judgment dated June 28, 1985, allowed the appeal filed by the assessee for the assessment year 1974-75 and quashed the assessment order, but so far as the remaining appeals are concerned, those were dismissed by the Tribunal. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcial Bank Ltd. v. CIT [1957] 32 ITR 688 (SC). Learned counsel for the Revenue, on the other hand, has supported the orders passed by the Tribunal as well as the income-tax authorities and submitted that the Income-tax Officer, before issuing the notice under section 148 of the Act, had recorded the reasons and rightly issued the notices and initiated the proceedings under section 147 of the Act and the orders passed by the Tribunal as well as by the other income-tax authorities do not require any interference. We have considered the submissions made by learned counsel for the parties. Section 148 of the Act deals with the issuance of notice where income has escaped assessment and requires that the Assessing Officer, before issuing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the burden was on the Revenue to show under which head the income was chargeable and as the assessee derived income only from agriculture, therefore, the addition could have been made only in the "agricultural income" of the assessee and not under the head "Income from undisclosed sources". It is true that the burden is on the taxation authority to show that a receipt constitutes an income and that income is liable to tax under the Act ; but when the assessee pleaded certain exemption from tax or that a receipt falls in a particular class of income then the burden lies on the assessee to prove that and not on the Revenue. The assessee, in the present case, claimed exemption from tax on the added income on the ground that the income in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atment of income ; (iv) whether an income is included in any of the heads other than the residuary head would depend on what kind of income it is, and if the income is profit or gain of profession, it cannot come under section 12, for section 12 does not say that an income which escapes taxation under a preceding head will be computed under it for chargeability to tax ; (v) an income has to be brought under one of the heads in section 6 and can be charged to tax only if it is so chargeable under the computing section corresponding to that head. Income which comes under the fourth head, that is, professional income, can be brought to tax only if it can be so done under the rules of computation laid down in section 10. If it cannot be so brou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lture was not possible and, therefore, rightly determined the added income as "income from undisclosed sources." The onus was on the assessee to show the extent of the agricultural income which the assessee failed to do and the explanation submitted by the assessee was not accepted by the income-tax authorities and, therefore, the assessee's added income was rightly assessed by the assessing authorities under the head "Income from other sources ". In this view of the matter, we are of the opinion that the income-tax authorities were right in treating the additional income as income from other sources. The questions referred by the Tribunal are, therefore, answered as under : Question No. 1 : Question No. 1 is answered in the affirmative ..... X X X X Extracts X X X X X X X X Extracts X X X X
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