B.RAMACHANDHIRAN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The assessee is on Tax Case (Appeal) as against the order of the Income Tax Appellate Tribunal (Tribunal), relating to the assessment year 2001 -02.

(2.) The assessee is an individual having income from business of purchase and sale of petrol, diesel etc and business of plying truck, leasing goods carriage. The assessee had agricultural income to the tune of Rs.6,75,000/ -. Since the assessee did not disclose any evidence to prove the receipt of the income as agricultural income and the nature of the operations done therein to earn the income, the said income was assessed under the head of 'income from other sources'. Aggrieved by this, the assessee went on appeal before the Commissioner of Income Tax (Appeals) VIII, Chennai.

(3.) Before the Commissioner of Income Tax (Appeals), it was contended by the assessee that the assessee had been in receipt of agricultural income right from 1997 -98 and the inclusion of the income under the head 'income from other sources' was unsustainable. In the light of the submissions made, the Commissioner of Income Tax (Appeals) called for a remand report from the Assessing Officer. In paragraph 5.1 of the order, the remand report from the officer was extracted. A reading of the remand report dated 25.01.2006 shows that the assessee had not produced any evidence as regards the receipt of agricultural income, the assessee had filed Village Administrative Officer's (VAO) certificate stating that the assessee owned agricultural land of 14.44 hectares in Anukkampattu village in Cuddalore Taluk and the said VAO certified that the assessee derived income at Rs.6,75,000/ - from the land. The Assessing Officer pointed out that the VAO was not authorised to certify the income from the land. Further, the Assessing Officer pointed out that the assessee had not disclosed any evidence like land adangal register, nature of crop cultivated, expenses incurred, to whom the agricultural produce was sold, who cultivated the land and how the income was derived. In the absence of any material produced to substantiate the receipt as agricultural income, the Officer held that the assessee's claim could not be accepted. However, considering the fact that the assessee owned 14.44 hectares of land, agricultural income could be estimated at Rs.1,50,000/ - and the balance be considered as 'income from other sources'.