Brijesh Dilipbhai Patel Vs. Asst. CIT
In the ITAT, Ahmedabad B Bench
ITA No. 3407/Ahd/2008
9 September, 2011 – A.Y. 2002- 03
ORDER
This appeal filed on 14-10-2008 by the assessee against an order dated 23-07-2008 of the ld. CIT(Appeals)-IV, Baroda, for the Assessment Year 2002-03, raises following
“(1) Ld. Commissioner of Income tax (Appeals-IV) has gravely erred in not appreciating the facts and proofs of agricultural income earned and introduced as capital of Rs.7,60,000/- and confirmed addition of it. Same may be deleted.
(2) Ld. Commissioner of Income tax (Appeals-IV) has erred in appreciating the facts and proofs regarding sale of vehicle and introduction of sale proceeds as capital of Rs. 4,00,000/- and confirmed made addition as income. Same may be deleted.
(3) Ld. Asstt. Commissioner of Income tax (Appeals-IV) has gravely erred in not appreciating the fact that deposit in loan account of Rs.99,000/- is made out of agricultural surplus as explained during the proceeding and confirmed unlawful addition as income under section 69C of the Act. Same may be deleted.
Your appellant craves leave to add, amend and/or alter any grounds of appeal at the time of final hearing of the case.”
2. Adverting first to ground no.1 in the appeal, facts, in brief, as per relevant orders are that return declaring salary income of Rs.50,000/- and share income of Rs.13,83,953/- from the firm M/s Abhishek Pooja Construction, was filed on 20-05-2005 by the assessee. During the course of assessment proceedings for the year under consideration i.e. Assessment year 2002-03 in the case of M/s Abhishek Pooja Construction Co., Karamsad, it was noticed that Shri Brijesh D Patel, the assessee, a partner in the said firm introduced an amount of Rs.56,70,991/- (Rs.49,10,991/- + Rs.7,60,000/-) in the firm. Since the source of the above investment in the firm was not satisfactorily explained by the firm, the AO had reasons to believe that income chargeable to tax escaped the assessment within the meaning of provisions of section 147 of the of the Income-tax Act, 1961 (hereinafter referred to as the ‘Act’). Accordingly, a notice under section 148 of the Act was served upon the assessee on 13-05-2005. During the course of reassessment proceedings, in response to a notice dated 04-07-2006, the assessee submitted a copy of a joint declaration made by Shri Hasmukhbhai M Patel (uncle of the assessee) and Shri Dilipbhai M Patel (father of the assessee) and pointed out that they had 29 vighas of agricultural land in the name of family members. They also cultivated agricultural land of around 6 vighas purchased by them, for which documents were yet to be executed besides mortgaged land of around vighas. They cultivated various crops like potato, chicory, banana and grains besides plantation of fruits like mango, amla, sitafal lemon etc.. The assessee also furnished following details of parties to whom crops were sold :
