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2020 (5) TMI 510 - AT - Income Tax


Issues:
Appeals for A.Y. 2003-04 & 2004-05 regarding addition of excess agricultural income of production of kismis.

Analysis:
1. The appeals were based on the addition of ?4,56,911 made by the assessing officer due to excess agricultural income shown by the assessee. The assessing officer restricted the agricultural income to ?2.5 lakhs and added the balance to the total income. The CIT(A) sustained this addition, leading to the appeals.

2. The assessee claimed that the kismis income for A.Y. 2003-04 was from the closing stock of the previous year and no new production occurred. The assessing officer calculated the income from kismis at ?21,59,111, but after verification, found discrepancies in the rates quoted by the assessee. The assessing officer treated the difference of ?4,56,911 as income from undisclosed sources.

3. The ITAT had previously remitted the case to the assessing officer for re-examination of the land holding issue. The assessing officer was required to re-evaluate the agricultural income earned by the assessee. The assessing officer collected information from the National Research Centre for Grapes to verify the sale price of kismis. The ITAT, after considering the rates quoted by both parties, restricted the disallowance to ?2,58,321, partly allowing the appeal.

4. In a separate appeal, the total disallowance was determined at an average rate of ?66 per kg. The ITAT restricted the addition of income from undisclosed sources to ?90,000, partly allowing this appeal as well.

5. In conclusion, both appeals of the assessee were partly allowed by the ITAT, with the total disallowance amount being reduced in each case based on the re-evaluation of the agricultural income and sale price of kismis.

This detailed analysis of the judgment highlights the key issues, the arguments presented by the parties, the findings of the assessing officer and the ITAT, and the final decision regarding the addition of agricultural income from kismis.

 

 

 

 

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