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TMI Blog2018 (7) TMI 2279X X X X Extracts X X X X X X X X Extracts X X X X ..... Authority in the present case does not have any foundational legs to stand upon. Revenue authority even though bestowed with the job to collect revenue in accordance with law cannot act arbitrarily and on a mere guess work make the additions in the declared income of the assessee. The reasonable factual enquiry in the matter, only can give support to their findings of facts, which are the subject matter of further scrutiny by the appellate forums and also by the constitutional Courts. The very foundation of assessment enquiry conducted by the Assessing Authority does not inspire any confidence in the present case and the entire assessment has to fall to the ground. We are of the opinion that the first appellate authority after having looked into the evidence on record was justified in granting the relief to the assessee, but Tribunal without assigning any cogent reasons has taken a different view of the matter and has rendered a finding of fact, which is bad and perverse to that extent. The said finding, therefore, cannot be sustained and the order of the Tribunal, therefore, requires to be quashed and set aside. The substantial question is thus answered in the favour of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be written by the same persons. In all these confirmation letters, date of transaction is not mentioned as also the date of receipt of advance is not mentioned. Only repayment of advance in 2009-10, that too in cash is mentioned, in all the confirmation letters. 3.3. As could be seen from the confirmation letters, the addresses of the first three persons happens to be the same address and holdings of agricultural lands is also in the same survey No.129. It is clear from this fact that the assessee has brought in confirmers only after the proceedings started from the Department. 3.4. In order to verify the authenticity of the confirmation letters, a letter, calling for information under section 133(6) was issued to Tahsildar, Belur Taluk, Hassan District, requesting the Tahsildar to furnish details regarding Agricultural holdings of the following persons: 1. Channa Shetty, S/o Ranga Setty, Madhugatta Village, Bikkodu Hobli, Belur, Hassan 2. Dhana Shetty, --------- do ---------- 3. M R Ranga Setty S/o M R Jayanna -- ------- do --------- In response to the above said letter, the Tahsildar, vide his letter dated 15/02/2013 has stated t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant to furnish details regarding the cash deposits amounting to Rs.15,07,900/- in her bank account. The appellant, in reply, explained that she had given advances for purchase of agricultural lands and following the cancellation of the deal the advance paid earlier was received back and deposited in the bank account in support of which she filed copies of the returns of income filed by her for the assessment years 2008-09 and 2009-10; that the advances paid for purchase of property were reflected in the statement of affairs filed before the AO during the assessment proceedings; and that the appellant had filed bank statements showing withdrawals made on 14/3/2009 to the extent of Rs.10 lakhs being advance paid for the purchase of agricultural lands; that the remaining amount of Rs.7,50,000/- had been paid much earlier on 31/3/2009 out of withdrawals from bank made on 9/6/2007 and 27/10/2007; and that, following the cancellation of the deal for the purchase of the property, the advance paid prior to 31/3/2009 had been returned, which were deposited in the bank account. The appellant also explained that the deal entered into for the purchase of property was only oral and no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee was only for a sum of Rs.10,00,000/- and not for the entire sum of Rs.15,07,900/-. He has further submitted that the Assessing Authority never examined the four agriculturists in question named above, nor the Tahsildar in question whose letter was believed by the Assessing Authority was produced and allowed to be cross examined by the assessee in the present case and the confirmations given in writing by these Agriculturists were disbelieved on an unfounded apprehension by the Assessing Authority that since they were in the same handwriting, they were not credible and could not be believed. He submitted that the withdrawal from the bank by the assessee for making the said advances between 2007 to 2009 to the agriculturists were duly proved with the help of passbook entries and confirmations given by the Agriculturists and those evidences having not been rebutted or controverted by the Assessing Authority, who made these additions, which were rightly set aside by the CIT (Appeals)-II, Bengaluru, but the learned Tribunal has wrongly allowed the appeal of the Revenue even though partly. Hence, the present appeal by the assessee before this Court under Section 260-A of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry well summon these Agriculturists and after their examination, he could have believed or discarded the evidence given by them. Misplaced apprehension of the Assessing Authority that since confirmations were in the same handwriting, therefore, they were not believable is a typical pro-revenue approach, without any foundation. The agriculturists most of whom might have been illiterates, could not have been expected to write their own confirmations to be produced before the Assessing Authority, but as the witnesses they could have been certainly summoned by the Assessing Authority for verifying the written confirmations given by them and it is only thereafter that the Assessing Authority could have confirmed the fact as to whether the written confirmations given by them were genuine or fake. 13. As far as the evidence collected through the Tahsildar under Section 133(6) of the Act is concerned also, we do not find that the said exparte evidence collected by the Assessing Authority has been confronted to the assessee or the Agriculturists in question. Thus, the whole process of enquiry conducted by the Assessing Authority in the present case does not have any foundational legs to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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