9911796707
TMI Blog2017 (7) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... total area under cultivation the crops sown and the expenses as also the net agriculture income out of the agriculture operations. Vide letter dated 06.11.2009 the assessee submitted that it has 3.5 acre of land under cultivation and he has cultivated ' Musly Seeds' during the year under consideration. It was further submitted that a sum of Rs. 2,25,000/- was spent and the net agriculture income of Rs. 12,49,420/- was earned out of the agricultural operations. In order to verify the veracity of the agricultural produce as claimed, an inquiry was made from the office of the Sub-Register Jagraon who was required to provide the copy of the 'Khasa Girdarwri' which gives the details of Crop Sown/Harvested by the land owner on the agriculture land during the specified period. The scrutiny of the 'Khasra Gardawari' revealed that actually the crops of Potato or Rice or Wheat were grown on the said land owned by the assessee during the year under consideration, Accordingly the assessee was confronted with this 'Khasa Girdawri' and given show cause notice to explain as to why addition of Rs. 14,75,000/- may not be made to its taxable income on account of unac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in light of the decision of the Hon'ble supreme Court in the case of Durga Parshad More, the conclusion is inescapable that the assessee has introduced the unaccounted income in its books of accounts in the garb of agricultural income and as such the source of investment in the capital accounts is not explained, same is, therefore, held to be unexplained income of the assessee. Accordingly an addition of Rs. 14,75,0007- was therefore made to the taxable income of the assessee by the Assessing Officer. 6. The assessee filed additional evidences before ld. CIT(Appeals) which were not available at the time of assessment proceedings; i) Affidavit of Shri Amrik Singh S/o Shri Harbhajan Singh ii) Bank certificates of Punjab National Bank, Model Town, Ludhiana. 7. The ld. CIT(Appeals) admitted these additional evidences and directed the Assessing Officer to examine these additional evidences with reference to assessee's claim of genuineness of agriculture income. The Assessing Officer submitted his remand report which is quoted in the appellate order in which the Assessing Officer has reported that Shri Amrik Singh S/o Shri Harbhajn Singh, Resident of village Talwara has at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings in para 3.7 of the order are reproduced as under: "3.7 I have carefully considered the submissions of the appellant and facts of the case on record. The following facts emerge from records :- (a) The assessee has 3.5 acres of land at village Gorsain Kadarbaksh, wherein the assessee has claimed to have cultivated 'Safed Musli'. As per 'khasra Gidawari' of this land, Potato, Rice, Wheat and Stevia was cultivated on this land. The revenue record donot show cultivation of any 'Safed Musli' on this land. In this regard, the additional evidence was filed in the form of Bank loan of Punjab National Bank from where a loan of Rs. 5 lakh was taken by the appellant. As per bank statement of PNB, as on 01.04.2006 loan outstanding of PNB was Rs. 1,87,190/- and as on 31.03.2007 it was Rs. 1,42,455/-. During remand proceedings, on 26.11.2012, the assessing officer recorded a statement of one Sh. Amrik Singh of village TaSwara, who in his statement stated that he was doing agriculture activities on the village land at a salary of Rs. 8,000/-per month. He stated that he cultivated stevia and 'Safed Musli' on the land. The assessing officer while reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... avi Anand-Gujarat, planting of 'Safed Musli' is done during the month of June-July depending on the onset of monsoon. The best time for planting based on sprouting percentage of the dormant buds is during 25th June to 5th July. The crop is ready for harvest after four months of planting in October. Roots are allowed to remain in the soil and harvested in the month of March - April by digging the roots. The whole agricultural activity is labour intensive, the assessee did not use any labour for cultivation. The land in Ludhiana District is not suitable for cultivation of 'Safed Musli', even then the assessee did its cultivation, that too without incurring expenditure on cultivation except the fertilizers and no expenditure on labour. While the product is planted in the months of June-July, the assessee has sold the Tubes of Safed Musli' during the month of July itself. Tubes of 'Safed Musli' will be ready only in the months of February or March for sale. It is not known how the produce was sold in the month of July which was the planting time and not the harvesting time (g) The whole discussion brings out the issue that the assessee has jus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acres of land at village Jaunpur. It support explanation of assessee made before Assessing Officer. 11(i) The Assessing Officer in his further remand report reported to the ld. CIT(Appeals) that as per the calculation, the profit per acre may be considered at Rs. 4 lacs. The assessee also furnished copy of the notices issued by Assessing Officer, details of agriculture income, copy of the details of agriculture income earned on selling safed musli supported by copies of the sale bills. The sale consideration of three bills were received through cheque and sale consideration of two bills were received through cash. The amount have been deposited in the bank account of the assessee. These evidences on record in the light of the remand report submitted by the Assessing Officer and finding of the ld. CIT(Appeals) while remanding the matter to the Assessing Officer accepting the agriculture income of the assessee clearly proved that assessee earned agriculture income on account of cultivating safed musli. When Assessing Officer accepted claim of the assessee and ld. CIT(Appeals) found claim of the assessee to be prima facie correct, there should not be any reason to reject the claim o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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