Chintan Umedsinh Sodha Vs ITO (ITAT Rajkot)
No Bogus Evidence Found- From Rs.13.91 Lakh to Rs.1.39 Lakh: ITAT Applies 10% Estimate in Agriculture & Tuition Case
Assessee declared total income of Rs.3,99,350 & agricultural income of Rs.4,95,050. AO, during scrutiny u/s 143(3), treated agricultural income of Rs.8,15,200 & tuition income of Rs.5,75,800 as unexplained income, holding that Assessee failed to produce sale bills, vouchers for agricultural expenses, or adequate proof for tuition such as student details, fee structure & tutor qualifications. CIT(A)-NFAC confirmed additions in full.
Before Tribunal, Assessee submitted that evidences such as 7/12 extract, 8A utara & agricultural income-expenditure ledger were furnished; tuition ledger was also produced. Without prejudice, Assessee stated willingness to accept an estimated addition. Revenue also supported a reasonable estimate. Tribunal noted that AO did not dispute genuineness of landholding nor label evidences as bogus; shortcomings were only in completeness of documentation. Considering smallness of amounts & balanced approach requested by both sides, Tribunal applied a net profit rate of 10% on combined additions of Rs.13,91,000, sustaining only Rs.1,39,100 as income. Remaining additions deleted. Tribunal clarified that this estimation is not to be treated as precedent. Appeal partly allowed.
FULL TEXT OF THE ORDER OF ITAT RAJKOT
