Commissioner Of Income Taxmadurai Appellant v. Mrs.kulandai Theresarespondent

IN THE HIGH COURT OF JUDICATURE AT MADRAS Coram : THE HONOURABLE MR.JUSTICE K.RAVIRAJA PANDIAN and THE HONOURABLE MR.JUSTICE M.M.SUNDRESH Commissioner of Income TaxMadurai Appellant / Appellant v. Mrs.Kulandai TheresaRespondent / Respondent Tax Case Appeal filed under section 260A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal,Madras 'D' Bench, Chennai, dated 30.06.2008 passed in IT(SS)ANo.71/Mds/2004 against the order of the Commissioner of Income Tax(Appeals) I, Madurai dated 31.3.2004 and made in ITA No.291/2001-2002 against the order of the Deputy Commissioner of Income Tax,Circle-I, Tuticorin dated 28.06.2001 and made in P.A.No./GIRNos.742. For appellant :Mrs.Pushya Sitaraman JUDGMENT (Judgment of the Court was delivered byK.RAVIRAJA PANDIAN, J.) The revenue on appeal against the order of the Income TaxAppellate Tribunal, Madras 'D' Bench, Chennai, dated 30.06.2008passed in IT(SS)A No.71/Mds/2004. 2. The facts as culled out from the statement of facts in thememorandum of grounds of appeal are as follows:- A search took place in the residential and business premisesof Late Shri.C.Sudalaimani Nadar, Eral on 07.07.1999 under section132 of the Income Tax Act, 1961, which revealed variousinvestments, expenditure, movable and immovable assets. Theassessing Officer initiated proceedings under section 158 BC andafter examining the books of accounts and other informationhttps://hcservices.ecourts.gov.in/hcservices/gathered during search, determined the undisclosed income at Rs.30,50,630/-. On appeal, the Commissioner of Income Tax(Appeals) estimated the agricultural income and non-agriculturalincome and deleted the addition to that extent for the reason thatthe assessee had not disclosed his agricultural income as well asnon-agricultural income to the full extent in the regular return ofincome filed and on that basis the undisclosed income wasdetermined at Rs.9,15,490/-. Both the revenue as well as theassessee filed appeal and cross-appeal before the Tribunal. TheTribunal upheld the order of the Commissioner of Income Tax(Appeals) on the ground that the assessee had suppressed not onlyhis non-agricultural income, but also his agricultural income.Therefore, when the undisclosed part of the non-agricultural incomeis worked out, it is incumbent upon the Commissioner of Income Tax(Appeals) to give credit for the undisclosed part of theagricultural income and dismissed the appeal filed by the revenue.The same is now put in issue by formulating the following questionof law:- "Whether on the facts and circumstances ofthe case, the Tribunal was right in confirming theCIT(A) order when the CIT(A) has failed toestimate the agricultural income of the assesseeconsidering the extent of lands and theagricultural income admitted by the assessee inhis regular return of income?". 3. We heard the arguments of the learned counsel for therevenue and perused the materials available on record. 4. There is no doubt that the agricultural income is anexempted income for the purpose of Income Tax. The Commissioner ofIncome Tax (Appeals) has reasonably established on examination ofthe materials available before him that the assessee had suppressednot only his non-agricultural income but also his agriculturalincome. Therefore, when the undisclosed part of the non-agricultural income is worked out, it is lawfully incumbent uponthe officer concerned to give credit for the undisclosed part ofthe agricultural income. That is what exactly done in this case.We find no merit in this appeal so as to entertain the same. Hencethe appeal is dismissed. Sd/Asst.Registrar rg To 1. The Commissioner of Income Tax Madurai Madurai 2. The Assistant Registrar Income Tax Appellate Tribunal 'D'Bench, Income Tax Appellate Tribunal 'D'Bench, Besant Nagar, Chennai - 90. Sd/Asst.Registrar rg To 1. The Commissioner of Income Tax Madurai Madurai 2. The Assistant Registrar Income Tax Appellate Tribunal 'D'Bench, Income Tax Appellate Tribunal 'D'Bench, Besant Nagar, Chennai - 90. 3. The Commissioner of Income Tax(Appeals)I, Madurai. Madurai. 4. The Deputy Commissioner of Income Tax, Circle - I, Tuticorin. Circle - I, Tuticorin. 1 cc To M/s.Pushya Sitaraman, Advocate, SR.14474 T.C.(A)No.35 of 2009 SR(CO)SRA(22/4/2009)