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TMI Blog2012 (8) TMI 923X X X X Extracts X X X X X X X X Extracts X X X X ..... has erred in law and on facts in restricting the addition out of AGRICULTURE INCOME as Non Agriculture Income to the extent of ₹ 60,000/- despite submission of complete details and evidences of Agriculture Income and Expenses. 3.1 Facts in brief as emerged from the corresponding assessment order passed u/s.143(3) of the I.T.Act dated 27/12/2006 were that the assesseeindividual has shown salary income and agricultural income. It was noted by the Assessing Officer that net agricultural income of ₹ 2,26,888/- was disclosed by the assessee. The assessee has informed that he cultivated agricultural product on the agricultural land owned by him. A sum of ₹ 14,572/- was spent on fertilizer and a sum of ₹ 1,210/- was stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s claim that the land was cultivated by those labourers and that the two labours who had made affidavit did not appear before the AO nor those affidavits contained their addresses. Nevertheless it is not in dispute that the appellant has been earning such income and that the same has been accepted by the department as true save and except the quantum of such income. Further during the year under consideration the AO has also accepted the income at ₹ 72000/-. Thus what is in dispute is only the quantum of income. Considering the fact that in the preceding previous year also the appellant had shown to have earned gross income of ₹ 257598/- against which the expenses were claimed at ₹ 189661/- where as the AO had estimated su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion has bee drawn on page-155 of the compilation in this regard, wherein the crops such as, gawar, mattar, etc. were shown in Kgs. and the amount receipt for each such crop. It has also been argued that in the past the agricultural income almost to that extent has always been accepted by the Revenue Department. From the side of the Revenue, ld.Sr.DR Mr.Phagu Oram has placed reliance on the order of the Assessing Officer. Having heard the submissions of both the sides, we are of the considered view that both the lower authorities have decided this issue merely applying an estimated ratio of expense to arrive at the net figure of agricultural income. On the other hand, assessee s vehement contention is that considering the area of the agricu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r was carried before the first appellate authority, who has affirmed the action of the Assessing Officer. 9. We have heard both the sides. We have also perused the contents of the affidavit along with income and expenditure account of the lady. Although she is not a taxpayer, but her capital account, balance-sheet, etc. were filed in the compilation. Above all, we have been informed that the said loan amount had in fact, been re-paid to her through A/c.payee cheques in the month of March- 2005 by the assessee. In support of this contention, a photocopy of bank account of U.B.O.I. (SB/56306) has been placed in the compilation through which it was demonstrated that three cheques respectively ₹ 95,000 + ₹ 40,000 + ₹ 80,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the said party; wherein the PAN was stated to be duly informed. Our attention has also been drawn on the Income-tax returns filed by the said concern. During the argument, the ld.AR Mr.S.Kabra has informed that the impugned amount was re-paid through demand draft to the assessee. However, on specific query raised by the Bench, the details of the said Demand draft or the mode of re-payment could not be explained. Rather, for this limited purpose, it was pleaded that the matter can be referred to Assessing Officer for necessary verification. We hold accordingly and direct the assessee to furnish the requisite detail about the re-payment of impugned loan of ₹ 7 lacs to the Assessing Officer and if found to be satisfactory, then the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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