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TMI Blog2016 (8) TMI 915X X X X Extracts X X X X X X X X Extracts X X X X ..... ken-up for scrutiny, the A.O. noticed that there was no documentary evidence to prove that the agricultural land was in the name of the firm; it was also not proved that the assessee earned agricultural income to the extent shown in the books. Since it had declared more than Rs. 18 lakhs as sale proceeds it is the duty of the assessee to prove the cultivation of crop, expenditure incurred thereon, and the source of receipt in the form of sale of agricultural produce. Accordingly, a show cause notice was issued calling upon the assessee to prove the same. In the show cause notice he observed as under : 1. "As per the copies of vouchers of Tak Patti furnished by you, on verification it is found that they do not tally with the original record maintained by the Sub-Office, Agricultural Market Committee, Mir-Alam-Mandi. According to the Market Committee Record, Tak Patti Book No.1450 was actually issued to Mr. B. Chandrasekhar, Commission. Agent, whereas the same was shown by you as if it was issued to Mr. Shahed Ali, Commission Agent. Also the book no.3292 was issued by the Government on 1-8-2009, as such it should not contain the transactions prior to 1-8-2009, whereas in your materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 142(2) of the Act was issued to the assessee, to enable them to appear on 24.12.2010, but the said notice was in fact dispatched on 20.12.2010 which was received by the assessee only on 08.01.2011 whereas the assessment was actually completed on 27.12.2010 and therefore, the assessment can be said to have been completed in violation of principles of natural justice i.e., by not affording a reasonable opportunity of hearing. 2.3. On the other hand, the conclusion of the CIT(A) was that even if it is assumed that no proper opportunity was given by the A.O, atleast before the CIT(A) assessee ought to have filed some evidence to prove its agricultural activities but no such evidence was produced to substantiate its claim and thus, there is no reason to interfere with the order passed by the A.O. 3. Aggrieved by the order of the CIT(A), the assessee is in appeal before the Tribunal. The assessee has raised as many as 07 grounds of appeal, enclosed to Form No.36 filed before the Tribunal. The sum and substance of the grounds are that the CIT(A), while passing the order, erred in dismissing the appeal without properly noticing that the assessment was completed without giving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raphs whereas one needs to consider as to whether any activity was carried on in the F.Y. 2007-08; when assessee claims exemption it is for them to prove that agricultural operations were carried on in that year. Thus the details furnished for the first time before the Bench should not be admitted in exercise of the powers vested under Rule-29 of the I.T. Rules since those certificates, even otherwise, do not any way help the stand of the assessee. 6. I have carefully gone through the rival submissions and perused the record. In my opinion, the assessee has not made out a good case for admission of the additional evidence. Admittedly, we are concerned with the details pertaining to the F.Y. 2007-08. Even if it is assumed that the A.O. has not given proper opportunity it is for the assessee to prove its case atleast before the CIT(A) by furnishing necessary evidence in support of its stand that the assessee-firm indeed owns agricultural land and it had carried on agricultural activity in the F.Y. 2007-08. Assessee-firm did not furnish any evidence before the CIT(A) though sufficient time was available. Therefore, I do not see any justification to admit the additional evidence at th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nure and other record submitted, apart from the fact that the assessee has been returning gross receipts from agriculture over the past several years which matches with the income declared in this year. 7. On the other hand, Ld. D.R. submitted that the reason for disallowance of the claim is well-known to the assessee since detailed reasons were mentioned in the assessment order and, if the assessee is aggrieved by the said order, atleast before the First Appellate Authority the assessee ought to have furnished proper details to prove that the firm owns agricultural land, and by way of partnership deed the partners have agreed to introduce the agricultural land as part of their capital contribution. In the instant case, even the partnership deed is silent. In the F.Y. 2007-08 the gross agricultural income declared hovers around Rs. 50,000 per acre and even as per the so-called agricultural income certificates issued by the Tahsildar of that area, as on 14.08.2015 the agricultural income works out to Rs. 20,000 per acre (approximately) i.e., for a total extent of ac.14.18 guntas according to the Tahsildar the agricultural income would be about Rs. 4 lakhs and for an extent of ac.29 ..... 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