T.kousalya Bai v. The Income Tax Officer,Ward I (2),Madurai

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURTDATED: 26.08.2011CORAM:THE HONOURABLE Mr.JUSTICE P.JYOTHIMANIandTHE HONOURABLE Mr.JUSTICE M.M.SUNDRESHT.C.A.(MD)No.1 of 2011 T.Kousalya Bai...Appellant/Respondent Vs. The Income Tax Officer,Ward I (2),Madurai....Respondent/Appellant Prayer: The Tax Case Appeal is filed under Section 260 A of the IncomeTax Act, against the order of the Income Tax Appellate Tribunal, BenchB, Chennai dated 31.08.2010 passed in ITA No.230/Mds./2010. For Appellant: Mr.K.Ravi For Respondent: Mrs.S.Srimathy for Mr.R.Sathiamoorthy JUDGMENT (Judgment of the Court was delivered by M.M.SUNDRESH,J.) By formulating the following substantial questions of law, theassessee has come forward with this appeal, being aggrieved against theorder passed by the Tribunal in ITA No.230/Mds/2010: - "1.Whether in the facts and circumstances of the case, theIncome Tax Appellate Tribunal is right in disallowing theclaim of exemption when no contrary evidence was led in todisprove the findings given by the Commissioner of IncomeTax (Appeals) and that of the respondent herein in theremand report? 2.Whether in the facts and circumstances of the case, theIncome Tax Appellate Tribunal has travelled beyond itspowers in giving a finding contrary to the finding of factof the respondent herein in the remand report without anycontrary evidence on record? 3.Whether in the facts and circumstances of the case, theIncome Tax Appellate Tribunal was right in denying theexemption of agricultural income by giving a perversefinding that 13.25 acres of agricultural land was not ownedby the appellant herein during the year under consideration? 4.Whether in the facts and circumstances of the case, theIncome Tax Appellate Tribunal was right in denying theexemption of agricultural income for the reasons that therecords of the Deputy Collector, Thirumangalam does not showany collection of agriculture income during the year?"https://hcservices.ecourts.gov.in/hcservices/ 2.The facts in brief are as follows: The assessee is an individual. A return was filed for the assessmentyear 2003 – 2004 declaring an interest income of Rs.36,630/- and anagricultural income of Rs.13,24,540/-. The case of the assessee wastaken for scrutiny and a notice under Section 143(2) was issued. Thereafter, the assessment was completed under Section 144 on13.03.2006. The Assessing Officer passed an order holding that theagricultural income offered by the assessee is an unexplained interestincome, which has not been satisfactorily proved by the assessee. 3.Being aggrieved against the order of the Assessing Officer, theassessee preferred an appeal before the Commissioner of Income Tax(Appeals), Madurai. The CIT (Appeals) allowed the appeal filed by theassessee by relying upon the remand report, since the assessee did notappear before the Assessing Officer. In the order passed by the CIT(Appeals), it has been stated that inasmuch as the income derived by theassessee by way of her agricultural operation, having not been disputedby the Assessing Officer, the same will have to be taken into account. Accordingly, the appeal filed by the assessee was allowed. TheDepartment took the matter for further appeal to the Tribunal. TheTribunal, after considering the materials on record, was pleased to holdthat the finding rendered by the CIT (Appeals) to the effect that theAssessing Officer had no objection to the income, stated to have beenderived from the agricultural operation, is factually wrong. TheTribunal has further held that the information given by the assessee hasnot been specifically disputed or denied, cannot be a ground to holdthat the assessee has properly explained the said income. 4.After considering the remand report, the Tribunal has furtherheld that the assessee has not satisfactorily proved that the income wasderived from the agricultural operation. A further finding has beengiven by the Tribunal that the Tahsildar, Tirumangalam, Madurai, hasrecorded that there was no collection made during the year 2002 – 2003,which is relevant to the assessment year 2003 – 2004. The records alsoshow that no agricultural operation has been done on the said land. Therefore, taking into consideration of the report of the Tahsildarrejected the contention of the Assistant Appellate Commissioner inmaking wrong reliance upon the remand report, the Tribunal being thefinal fact finding authority, has allowed the appeal. Challenging thesame, the present appeal has been filed. 5.The learned counsel for the appellant submitted that theTribunal has not taken into consideration of the relevant materials. The learned counsel has further submitted that the materials availableon hand at present, will have to be considered by remitting the matterback to the Assessing Officer once again. We are not able to appreciatethe said contention made by the learned counsel for the appellant. 6.When the Tribunal being the final fact finding authority, onhttps://hcservices.ecourts.gov.in/hcservices/facts, held that the assessee has not proved her case regardingagricultural income, no useful purpose will be served by remitting the matter. When the assessee herself claims exemption on the ground thatthe income derived was an agricultural income, it is for her to provethe said fact. Admittedly, an opportunity was given before theAssessing Officer and in order to give further opportunity, theAssistant Appellate Commissioner has called for remand report. Aftercalling for the remand report as rightly pointed out by the Tribunal, awrong reliance has been made by the Assistant Appellate Commissioner. The Tribunal has gone into the entire materials available on record,including the remand report as well as the records produced at theinstance of the Tahsildar and came to the conclusion that the appealwill have to be allowed. 7.We do not find any substantial question of law involved in thiscase, warranting interference. Accordingly, this appeal is dismissed. No costs. Sd/- Assistant Registrar(RTI Act) /TRUE COPY/ To The Income Tax Officer,Ward I (2),Madurai. Sub Assistant Registrar nbjPA/28.09.2011/3P/2C T.C.A(MD)No.1 of 2011 26.08.2011