2011 (3) TMI 1818 - AT - Income Tax

Summary

Issues involved: Appeal against addition of agricultural income u/s 148/143(3) of the IT Act for assessment year 2001-02.

Summary:
1. The assessee appealed against the addition of agricultural income of Rs. 3,38,370 out of the total addition of Rs. 3,67,400 made by the Assessing Officer.

2. The Assessing Officer estimated net agricultural income at Rs. 10,000 per acre for land in Bhopal, leading to the addition of Rs. 1,99,000 as agricultural income and the balance as income from undisclosed sources u/s 68 of the IT Act.

3. Before the Commissioner of Income-tax (Appeals), the assessee argued that the net agricultural income from land in Madhya Pradesh was Rs. 6,21,270, supported by proof of proceeds and expenses. The Commissioner estimated income at Rs. 15,000 per acre, retaining the addition at Rs. 3,38,370.

4. The assessee contended that the Commissioner overlooked the production and sale of soya crop, presenting detailed evidence. The total net income shown was Rs. 6,21,270 for 18.86 acres in Bhopal, yielding an average rate of Rs. 33,000 per acre.

5. After reviewing the contentions and evidence, it was deemed reasonable to estimate the income at Rs. 22,000 per acre. The Assessing Officer was directed to recompute the agricultural income accordingly.

Decision:
The appeal was allowed in part, with the direction to recompute agricultural income at Rs. 22,000 per acre.