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Denial of agricultural income claim Analysis: The appeal pertains to the denial of the claim of agricultural income by the Assessing Officer (AO) and subsequent confirmation by the Commissioner of Income Tax (Appeals) [CIT(A)]. The AO added Rs. 90,627 as income from other sources out of the total agricultural income claimed by the assessee, leading to a dispute. The assessee declared income of Rs. 42,570 and agricultural income of Rs. 2,48,427, which was later revised to Rs. 1,36,047 during assessment. The AO based the denial on the grounds that the crop of Sarson was sown later than the sale date mentioned by the assessee, raising doubts on the possibility of the sale. The assessee provided evidence such as Girdawari report, sale receipts, and electricity bills to support the agricultural income claim. The CIT(A) upheld the AO's decision, prompting the appeal. Upon reviewing the submissions and evidence, it was highlighted that the assessee had no other source of income besides agriculture and interest income. The AO did not establish any other source of income for the assessee or involvement in crop trading. The assessee's ownership of agricultural land was acknowledged, and past acceptance of agricultural income by the AO was noted. A newspaper report questioning the reliability of Girdawari records was presented, casting doubt on the accuracy of such records. Given the absence of other income sources for the assessee and the existence of receipts from the Krishi Upaj Mandi Samiti, the claim of agricultural income was deemed valid. Legal precedents were cited to support this decision, leading to the reversal of the CIT(A)'s finding and the deletion of the addition made by the AO. In conclusion, the appellate tribunal allowed the appeal of the assessee, overturning the denial of the agricultural income claim. The entire addition of Rs. 90,627 was ordered to be deleted, emphasizing the assessee's reliance on agricultural income as the primary revenue source.
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