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Issues involved: Assessment of agricultural income u/s 2,75,000/- as 'income from other sources' and appeal against the order of the Income Tax Appellate Tribunal for the assessment year 2001-02.
Summary: The assessee, engaged in the business of purchase and sale of petrol, diesel, and plying trucks, also had agricultural income of &8377; 6,75,000/-. However, due to lack of evidence to prove the nature of agricultural operations, the income was assessed as 'income from other sources'. The Commissioner of Income Tax (Appeals) called for a remand report, which highlighted the absence of evidence supporting the agricultural income claim. The Assessing Officer estimated agricultural income at &8377; 1,50,000/- and treated the balance as 'income from other sources'. The First Appellate Authority found discrepancies in the assessee's capital account and lack of evidence for unexplained investments or expenditures. The Commissioner allowed the claim, leading to an appeal by the Revenue before the Income Tax Appellate Tribunal. The Tribunal restricted agricultural income to &8377; 4,00,000/- and treated the rest as 'income from other sources'. The Tribunal's decision was challenged by the assessee, arguing that the agricultural income should not have been restricted. The High Court reviewed the orders of the Assessing Officer, First Appellate Authority, and Tribunal, noting the lack of evidence provided by the assessee to prove the agricultural income. The Court upheld the Tribunal's decision, emphasizing the assessee's failure to substantiate the claim with proper materials. In conclusion, the High Court rejected the appeal, affirming the Tribunal's order and dismissing the Tax Case (Appeals) without costs. The Court highlighted the importance of providing sufficient evidence to support claims of agricultural income, as required by law.
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