2008 (7) TMI 986

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..... tion was made by the Assessing Officer, while treating the agricultural income shown by the assessee on account of sale of trees as Income from other sources . The order of the Assessing Officer was upheld by the Commissioner of Income-tax (Appeals), Karnal. However, on appeal filed by the assessee, the Tribunal has deleted the said addition while observing as under : We have considered the rival contentions, carefully gone through the orders of the authorities below and also deliberated on the case laws cited by the learned AR in the context of factual matrix of the case. From the record, we found that the assessee has purchased agricultural land measuring up to six acres, and on a portion of it, factory building along with an office .....

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..... the revenue to show that documents/information furnished were not true. If after 3-4 years, the purchaser has left the place of his business, the assessee cannot be faulted and if while leaving the changed address has not been made known to the assessee, the assessee cannot be compelled to furnish the changed address. Once the genuineness of the transaction of sale is proved, the consideration of which was received through account payee cheques, the assessee cannot be faulted if the Assessing Officer is unable to find out the bank address of the supplier. It is also not the case where payment was made in cash or through drafts which cannot be prepared by deposited cash, but on the contrary, the payment was received through account payee ch .....

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..... e present case, it has been found by the Tribunal that the trees were planted in the vacant land in the financial years 1991-92 and 1992-93 and the expenses incurred on the plantation of those trees were also debited in the books of account. Subsequently, when those trees grew up, the same were sold to M/s. Shree Ram Traders. It has been found that the sale consideration was received through account-payee cheques, which was deposited in the regular bank account of the assessee. The assessee furnished bill, vide which the trees were sold to M/s. Shree Ram Traders. The identity of the purchaser has been duly disclosed. In these circumstances, the Tribunal has come to the conclusion that the assessee shifted the burden on the revenue, but the .....

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