9911796707
TMI Blog2004 (1) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted that the assessee had produced various types of flowers like Chrysanthemums, Pink Replex, Crimson Charlie, Sunflower, Jasmine, Chadni etc. Further, it was submitted that the assessee sold various buds of flowers produced at various mandies and also participated in various flower shows. Vide its letter dated 15-1-2000 the assessee informed that the total area of cultivation of flowers were approximately 10 to 12 bighas. The assessee was further asked to furnish following details : (1)How much was the period of cultivation; (2)How much was the yield per acre; (3)To whom were the flowers sold daily. Confirmations from parties to be filed; (4)Was there any agreement with the parties to whom the flowers were sold; (5)Are there any supporting documents in support of yield per acre; (6)Details of expenditure incurred on agriculture. 3. The assessee in its reply stated as under : "The flowers were sold by the assessee through its outlets at Karol Bagh, Defence Colony, Farm House site, mandi at Mehrauli. The assessee had also supplied flowers to M/s. Ashoka Florist, Classic Florist, Saroj Farms, Sparesh Florist. The payments from these florist shops were receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see for its comments. The assessee replied that the statistics were not much relevant for chrysanthemum cultivation that was being undertaken by the assessee. The details furnished by the NHB appeared to be mainly pertaining to chrysanthemum which was sold loose for the purpose of Pooja and Garland whereas the assessee was cultivating much better quality of said flowers which were sold on pcs. Rate/doz. Rate. The assessee further relied upon the study conducted by P. van der kam b.v. of Holland in support of its yield of 60,000 cutting in an acre. 5. The Assessing Officer after having considered the submissions of the assessee observed that it was not denied that during the relevant previous year, the assessee had cultivated flowers. Even according to the assessee, the higher area of cultivation was around 2 acres. Even in the succeeding assessment year, i.e., 1998-99 no income had been shown from agriculture. The land where the flowers were grown was situated far beyond the Airport and there was no outlet nearby where the flowers could be sold on daily basis. Details of agricultural income filed showed that on a number of occasions, the amount had been shown as received on s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee s letter, if estimate was to be done, then rose or gladiolus should be taken as approximate standards for the assessments. According to crop cycle given by NHB, rose family is one crop/year gladiolus family is one crop/year chrysanthemum is two crop/year and seasonal three crop/year. According to this total gross profit was worked at Rs 5.96 lakhs. The Assessing Officer further mentioned that the assessee had also grown pots in green house. Further, the area for each crop has not been given by the assessee. Considering the plea of the assessee that majority of the flowers grown acre chrysanthemum, the Assessing Officer estimated the income as under: Chrysanthemum 500 (sm.) 2.92 Rose 2500 (sm) 2.17 Gladiolus 2500 (sm) 1.65 Others (whenever land is vacant) 0.68 Rs. 8.42 Further, the Assessing Officer estimated the income from sale of flowers grown on pots in green house and flower shows at Rs. 1.5 lakhs. Thus, the Assessing Officer estimated total income of the assessee at Rs. 9.92 lakhs as against Rs. 21,02,193. Hence, he made an addition of Rs. 11,10,193 as income from other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10,000 sq.m. Gross profit = 2.17 lakhs 4 = 8.68 lakhs per hectare For one crop only. 2 crops in a year, i.e., 8.68 lakhs 2 = Rs. 17,36,000 Further, the Assessing Officer has estimated profit from sale of flowers grown in pot in green house at Rs. 1,50,000 if the same is added then the total income will come to Rs. 18,86,000 as against Rs. 9,92,000 estimated by the Assessing Officer. Accordingly, in my considered opinion, the estimated agricultural income will be Rs. 18,86,000 and the difference between the income estimated as above and income shown by the assessee will remain at Rs. 2,16,193. The Assessing Officer is directed to take Rs. 2,16,193 as income from other sources as against Rs. 11,10,193. The assessee will get relief of Rs. 8,94,000. In the result, the appeal is partly allowed." 7. The Learned DR has submitted that the assessee has disclosed agricultural income at Rs. 21,02,193 and the Assessing Officer after having examined the claim of the assessee came to the conclusion that the assessee had shown higher agricultural income than the actual earned income. Therefore, he had estimated t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cultivation was submitted before the Assessing Officer to prove that 6,000 cuttings could be grown in an acre. However, he pointed out that the assessee had not acquired these cuttings, which are patented varieties. In this regard, he referred to the last line at page 2 of the paper book wherein it is mentioned that: "P.S. propagation strictly not allowed also varieties are patented varieties". Thus no reliance can be made on the said brochure to claim the higher cuttings of chrysanthemum flower cuttings. He has further submitted that NHB is a nodal agency who is propagating agricultural activities and the report given by it has correctly been made basis by the Assessing Officer to estimate the income of the assessee from the cultivation of flowers. 10. He has further argued that the claim of the assessee that it sold flowers to various florists and sale proceeds were received in cash, is incorrect and in reality, it had been found that out of the total sale of Rs. 4,92,982, only 6 lakhs were received by way of cheque and the balance of Rs. 43 lakhs was allegedly received in cash. Since such a large percentage of sale proceeds were claimed to have been received in cash, the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commercial cultivation of the said varieties of chrysanthemum flowers. With the background of over 20 years of experience and knowledge of latest technical know-how obtained from Israil/Yerusalam, the Director of the company Smt. Rekha Rathi, became the pioneer to Indianise the latest growing techniques used to popularize the chrysanthemum as cut flowers in the domestic market. Thus any statistics from Government institution had no relevance to substantiate such dispute of yield for aforesaid cultivation of farmhouses. Sale of kind, quality flowers grown is given in the report of NHB cannot be applied to the assessee s case. The NHB report only states that only 6-7 flowerpots can be grown in a sq. mtr. Area under green house. Whereas, the assessee had grown plants in plastic bags which usually accommodated 30-40 plants in a sq. mtr. Area. In this connection, he invited our attention to the article of Mr. R.K. Bhandari at page 9 of the paper book. Thus, he has supported the order passed by CIT(A). 13. We have heard the parties and have perused the material to which our attention has been drawn. It is seen that the assessee initially mentioned that he has 10-12 bighas of land on ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
