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TMI Blog2004 (8) TMI 628X X X X Extracts X X X X X X X X Extracts X X X X ..... . 201/Agr/1999 in which the highest addition has been made. In ITA No. 201/Agr/1999 i.e., Veerendra Singh Bundela the relevant facts are that the Assessing Officer with regard to claim of Rs. 3,40,000 as agricultural income was of the view that the assessee could have earned only Rs. 1,69,200. However, with respect to the remaining amount of Rs. 1,70,800 he treated the same to be income from other sources and made an addition of this amount. 4. Aggrieved by this, the assessee went in appeal before the CIT(A) who observed in para 1.3 appreciated the facts as under:-- Name of the appellant Area of agricultural land Agricultural income shown (Rs.) Agricultural income as assessee by the A.O. (Rs.) Amount taxed as income from other sources (Rs.) Malkhan Singh Bundela 17.34 acres 2,80,000 1,73,400 1,06,600 Puran Singh Bundela 16.43 acres 3,10,000 1,64,300 1,45,700 Name of the appellant Area of agricultural land Agricultural income shown (Rs.) Agricultural income as assessee by the A.O. (Rs.) Amount taxed as income from other sources (Rs.) Ishwar Singh Bundela 17.53 acres 3,10,000 1,75,300 34,700 Virendra Singh Bundela 16.92 acres 3,4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s claimed that the quantum of agricultural income shown by the appellants could not be held as unreasonable. In all these appeals, a query letter as addressed by my learned predecessor to the Assessing Officer to make necessary enquiries about the nature of crops grown during the year i.e., Rabi, Kharif etc. and gross yield of crops which had been sold, details of expenses incurred on various items like fertilizers, seeds, pesticides, manual labour charges, electricity charges for running the tubewell, tractor charges, and expenses on freight for carrying produce to Mandi. In response to this query, a report has been sent by the Assessing Officer on 10-3-1998 including therewith a report of Lekhpal sundry details of income and expenditure (without any details) on agriculture activities alongwith copies of Khasra and Khatoni. Together with this, a report of Inspector of Income-tax has also been forwarded. On going through the report (a copy of which was also supplied to the counsel), it is noticed that it does not contain exact details about the operations undertaken by these assessees during the year under appeal. The details of weights and quantum of seeds, chemicals, fertilizers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re enjoying agricultural incomes during the year to the extent claimed by them in their returns. It may also not be called purely coincidental that huge agricultural incomes were available during the year when considerable investments in purchase of properties etc. were undertaken by them as mentioned in the assessment orders. Without prejudice to the claims of the assessees regarding huge agricultural incomes vis-á-vis huge investments, it could not be denied that it was incumbent upon them to produce the details of necessary expenditure incurred on various items required for conducting agricultural operations, the yield received and sale proceeds realized. The attitude of the appellants in all these cases for not providing required details is not understood. So much so, even the details of agricultural income shown by them in the preceding years have not been furnished during the appellate proceedings which would have been quite helpful in throwing some light on the agricultural income shown by them during the year. In the aforesaid background, there does not appear any merit in the contention of the appellants that the Assessing Officer's decision in their cases in treat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Simply because the details were not maintained by the assessee it was argued the assessee's claim could not be rejected based on an arbitrary estimate of the Assessing Officer. 10. Inviting attention to page 1 of the Paper Book which is a certificate of the Tehsildar dated 12-9-1996, it was submitted that the person competent to estimate the gross agricultural income has certified that the assessee could have earned Rs. 4,75,000 from agricultural activity. Similarly reliance was also placed on page 2 of the Paper Book which is the certificate of the Tehsildar regarding the net agricultural income wherein the Tehsildar has certified that the assessee has earned net agricultural income of Rs. 3,65,000. It was his submission that the claim of the assessee is only Rs. 3,40,000. Referring to page 3 of the Paper Book, it was further submitted that it is the certificate of the Gram Pradhan, Lalitpur certifying that the lands of the assessees were irrigated by tubewell and yields the 2 crops in a year. Attention was also invited to the net agricultural income worked out on an estimate basis by the assessee at page 4 of the Paper Book and a certificate of Lekhpal at page 5 dated 4-3-199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bundela (v)Virendra Singh Bundela The only point involved in their appeals is against the estimate of agricultural income made by the Assessing Officer. In this connection the appellants have already filed submissions dated 9-2-1998 and 17-12-1998. The assessees have also brought on record the certificates of Tehsildar regarding the estimate of agricultural income. 2. The written arguments dated 9-2-1998 with enclosures were sent by your predecessor to the Assessing Officer for his comments. The Assessing Officer vide his letter dated 10-3-1998 has forwarded the report of the Inspector of Income-tax and also report of the Lekhpal. 3. The Inspector had visited all the places where the agricultural lands are situated and has reported that : (a )Agricultural crops were growing on all the fields. (b)Irrigation facilities were available on each site. (c )Tractor was also found. (d)On some fields there was garden of mangoes and guava. (e )Keeping in view all the facts narrated in the report the Inspector concluded that a huge agricultural yield cannot be ruled out from the above agricultural fields. 4. The remand report submitted by the Assessing Officer in the form of Inspecto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icultural income claimed could a flat rate be applied to estimate the possible agricultural income or would it have been more appropriate to base the estimate on the specific irrigation facility available on their different chuncks of land keeping in view the nature of the soil etc. It is seen that the factum of assessee being engaged in agricultural activities has been accepted by the Revenue Authorities. However, no basis for estimating on a flat rate basis possible income of the assessee has been given either in the assessment order or in the impugned order. It is also seen that, on the other hand, in the remand proceeding the Inspector personally visited the agricultural fields of the assessee alongwith Shri Ram Sewak and Shri Ghuman Singh, Lekhpals of the respective areas and has given details of land holdings, the nature of irrigation facilities, etc. and crop found at that point of time. We have to take note of the fact in the Inspector's report at internal page 2 no doubt it is mentioned that the crop of wheat and urd was found standing in the field which according to the learned D.R. could not have been found standing at the same time since one was Rabi crop and other was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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