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TMI Blog2015 (9) TMI 1350X X X X Extracts X X X X X X X X Extracts X X X X ..... amination by AO as far as quantum of agricultural income earned by assessee. Moreover, certificate dated 29/08/2011 obtained from Tahsildar, Kadiam only indicates the produce grown by assessee without mentioning the yield per acre or income which one can reasonably expected to earn annually from such land holding and sell of agricultural produce. If assessee is able to substantiate the net agricultural income shown by him with supporting evidence, the same has to be accepted, other wise, AO can estimate the agricultural income on a reasonable basis after giving an opportunity to assessee to establish his claim. With the aforesaid observations, we set aside the impugned order of ld. CIT(A) and remit the matter back to the file of AO for cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e agricultural produce were sold to a company which has also not made payment to assessee by way of cheque, but, the company has passed journal entries towards payment by debiting debtors account thereby indicating that payments were received by assessee from debtors directly. He observed that assessee did not furnish any evidence to show receipt of sale proceeds from the debtors, but, only stated that amounts were received from the debtors directly in cash. AO observed, assessee even failed to furnish names and addresses of the persons from whom sale proceeds were received. AO opined that when both assessee and the company were having bank accounts, there was no necessity of making payment through cash. He observed, even the expenditure in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt paid amounted to ₹ 2,88,260, which is meager considering the income earned by assessee from agricultural activities. Further, she observed that the actual lease rent claimed to have been paid by assessee as per the details submitted was not in terms with the amount payable as per lease deed. Ld. CIT(A) observed, mere furnishing of MRO/Tahsildar Certificate does not establish earning of agricultural income to the extent shown by assessee. Ld. CIT(A) observed that when the entire expenditure is in cash, which were not supported by authentic evidence, assessee s claim of agricultural income cannot be accepted. Further, she observed that, though, assessee claimed to have made sales of agricultural product to the tone of ₹ 1,08,71 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has not only produced the details of land holding with supporting evidence like Pattadar passbook, lease agreements etc., hence, there is no reason to believe that assessee has not earned agricultural income. More so, when assessee has produced certificate from MRO/Tahsildar. Ld. AR submitted, only because the receipts and payments are made in cash, it cannot be said that assessee has not earned any income from agricultural activity. As far as transaction with ASCPL is concerned, ld. AR submitted, the entire transaction has been reflected in books of the said company and he referred to assessee s ledger account in the books of the company. As far as the allegation of ld. CIT(A) with regard to the variance in lease rent claimed to hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted, assessee s claim of agricultural income cannot be accepted. 7. We have considered the submissions of the parties and perused the orders of revenue authorities as well as other materials on record. As could be seen, in course of proceeding before AO as well as ld. CIT(A), assessee has furnished details of agricultural land holding with supporting evidence. Further, assessee has also submitted details of agricultural income earned, expenditure incurred in undertaking agricultural activity like purchase of raw materials, etc. as well as a certificate from MRO/Tahsildar, showing the yield of agricultural produce. It is also not disputed that assessee was having by way of lease, substantial agricultural land holding to the extent of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record that assessee was cultivated agricultural land holding of about 48 acres and the enquiry conducted by department itself shows that assessee is engaged in agricultural activity, there is no justifiable reason to disbelieve assessee s claim of agricultural income, though, may not be to the extent declared by assessee. Moreover, when assessee has submitted a certificate from MRO/Tahsildar indicating the agricultural produce grown by assessee, the said evidence brought from a govt. authority cannot be brushed aside lightly unless positive evidence is brought on record to disprove the claim of assessee. As far as allegation of the department that lease rental paid by assessee is meager compared to agricultural income earned by assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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