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2021 (3) TMI 516 - AT - Income TaxAgricultural income - income from land measuring 250 bighas taken on lease situated at Village Ahmadpur, District Haridwar -HELD THAT - Perusal of fasli khasra brought on record by the assessee got duly corroborated with evidence in the form of affidavits filed by the persons who have purchased the agricultural produce from the assessee and the fact that since the very beginning assessee has been requesting the Revenue Authorities to conduct physical inspection of land in question so as to actually assess its quality and production capacity. AO has not even preferred to examine the persons who were engaged in the agricultural production by the assessee and also not examine the persons who have purchased the agricultural produce from him during the year under consideration. When all the documents have been brought on record by the assessee during assessment proceedings but not examined by the AO assessee cannot put again and again in the same assessment proceedings and all the documents relied upon by the assessee presumed to have been accepted by the AO. Even, at no point of time, assessee has been directed by the AO to produce the concerned persons who have facilitated cultivation of the agricultural land and purchased the agricultural produce from the assessee. When we examine all these facts in the light of the fact that Addl.CIT during assessment proceedings of Assessment Year 2014-15 directed the AO to estimate the agricultural income from the land taken on lease @ ₹ 8,000/- per bigha as per letter dated 09.12.2016, this fact goes to prove that without examining the documentary evidence brought on record by the assessee, Revenue authorities are estimating the agricultural income at their whims and fancies. Assessee has duly brought on record the entire evidences to prove agricultural income @ ₹ 11,500/- per bigha per annum and has not inflated its income. All the documents have gone unrebutted on the part of the Revenue authorities. Consequently, both the appeals for AYs 2013-14 2014-15 filed by the assessee are allowed.
Issues:
1. Disallowance of agricultural income claimed by the assessee. 2. Assessment of income from land taken on lease. 3. Justification of estimated agricultural income. 4. Examination of documentary evidence by revenue authorities. Issue 1: Disallowance of Agricultural Income Claimed by the Assessee The appellant sought to set aside impugned orders passed by the Commissioner of Income-tax (Appeals) regarding the disallowance and restriction of agricultural income claimed for the assessment years 2013-14 and 2014-15. The Assessing Officer questioned the agricultural income claimed by the assessee from two different lands, leading to an estimation of income and subsequent additions to the total income. The Commissioner of Income-tax (Appeals) partly allowed the appeals, confirming certain additions to the income, prompting the assessee to appeal before the Tribunal. Issue 2: Assessment of Income from Land Taken on Lease The main question for determination was whether the assessee had earned agricultural income of ?11,500 per bigha from the land measuring 250 bighas taken on lease in Haridwar. The revenue authorities had declined to accept the claimed income per bigha, instead, estimating and restricting the agricultural income based on their own assessments and guesswork. The contention revolved around the quality of the land, crops sown, and the basis for estimating the income without proper examination of evidence. Issue 3: Justification of Estimated Agricultural Income The appellant contended that the revenue authorities did not adequately examine crucial documents such as land records, affidavits of buyers, and requests for physical verification of the land. The appellant provided justifications and computations for the claimed agricultural income, citing discrepancies in the estimation process and lack of supporting evidence considered by the authorities. The Tribunal examined the evidence presented by the appellant and found discrepancies in the estimation process followed by the revenue authorities. Issue 4: Examination of Documentary Evidence by Revenue Authorities The appellant argued that the revenue authorities failed to consider essential documents and affidavits supporting the agricultural income claimed. The Tribunal noted that the revenue authorities did not conduct a physical inspection of the land despite requests from the appellant and ignored crucial evidence provided during assessment proceedings. The Tribunal highlighted the importance of considering all relevant evidence and conducting thorough examinations before estimating agricultural income. In conclusion, the Tribunal allowed both appeals for the assessment years 2013-14 and 2014-15, finding that the assessee had provided substantial evidence to support the claimed agricultural income per bigha and had not inflated the income. The Tribunal emphasized the importance of considering all relevant documents and conducting proper examinations before making estimations or additions to the income.
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