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TMI Blog2019 (6) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... ricultural income at Rs. 40,000 per acre per annum purely on conjectures and surmises and thus erred in taking agriculture income of the appellant at Rs. 10,00,000 for assessment year 2013-14 in place of agricultural income of Rs. 19,33,670 shown by the appellant in his Return of Income for assessment year 2013-14. 2. The learned Commissioner of Income Tax (Appeals) erred in confirming addition to the extent of Rs. 9,33,670 to the total income of the appellant by estimating agricultural income at Rs. 40,000 per acre per annum. 2. Brief facts of the case are that the assessee is a practicing Advocate in Bombay High Court. The assessee filed his return of income for Assessment Year 2013-14 on 28.09.2013 declaring total income of Rs. 79,85,720/-. In the return of income the assessee has shown source of income consisting the head of income under "income from business and profession", "Capital Gain", "Income from Other Sources". The assessee also offered agriculture income of Rs. 19,33,670/-. The return of income was selected for scrutiny. The assessment was completed under section 143(3) on 28.03.2016. The Assessing Officer while passing the assessment order treated the agriculture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wner of adjoining/opposite farm allegedly told that the said farm was sold 8 to 10 years back and there is no agricultural activity. The Assessing Officer further noted that assessee has shown the self-made vouchers and bills that Agriculture Produce Market Committee (APMC) nor any signature or thumb impression on the sale receipt to whom agriculture produced or sold and that the assessee failed to produce any documentary evidence. The Assessing Officer treated the entire share of agriculture receipt as bogus agriculture income. 6. The ld. CIT(A) granted partial relief to the assessee holding that the net agriculture income of Rs. 77,347/- per acre shown by assessee appears to be very high and remained unsubstantiated. The ld. CIT(A) estimated the agriculture income @ 40,000/- per acre and assessed the total agriculture income of Rs. 20,00,000/-. The assessee being 50% share holder, therefore, the assessee was allowed relief of Rs. 10,00,000/- and remaining amount was confirmed. The ld. AR of the assessee submits that ld. CIT(A) made estimation of income. However, the same income was accepted in the return of income by mother of assessee. The ld. AR further submits that in earlie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee has shown net agriculture profit of Rs. 19,33,670/-. The assessee was asked to furnish detail of area of land, income received and expenditure incurred along with proof of payment and address of the parties who whom sales were made. The assessee filed his reply vide reply dated 29.01.2016. In the reply, the assessee furnished the detail of expenses consisting of electricity charges, labour charges, salary, pesticides and fertilizer, diesel, repair and maintenance, tractor charges, seeds, insurance and consultancy etc. The Assessing Officer further asked the assessee to furnish the details of permanent person employed for agriculture activities at the Farm land. The assessee furnished the name of three persons namely Shavesh Machin, Sana and Sitaram Pavade. The Assessing Officer recorded that notice under section 133(6), sent to all three persons, the notice sent to Sitaram Pavade returned back unserved and no compliance was made by remaining two persons. The Assessing Officer during the assessment deputed the Inspector to visit the farm land of assessee. As per the report of the Inspector, there were only few Mango trees which did not bear any fruit during the pick season. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the existence of various trees and plantation. On the basis of his observation, the ld. CIT(A) concluded that assessee is having a reasonable size of farm-land of 50 acres. The ld. CIT(A) on the basis of sale for Assessment Year 2013-14 which is Rs. 60,34,964/-, worked out the income of farm-land per acre per year of Rs. 77,347/-. According to ld CIT(A) the same remained unsubstantiated. The ld. CIT(A) further observed that assessee has shown the agriculture produce without involvement of regular traders and agriculture produce marketing committee (APMC). No payment or part of sale proceed is shown by assessee through cheques. The assessee has not spent expenses through cheque. The ld. CIT(A) concluded that the net agriculture income of Rs. 77,347/- per acres appears to be very high which remains unsubstantiated. The ld. CIT(A) having regard to the facts and circumstances of the cases and the fact that assessee was showing agriculture income in the past year also, the agriculture income was estimated at Rs. 40,000/- per acre per annum, thereby granted a relief of Rs. 10,00,000/- and remaining of Rs. 9,33,670/- was confirmed. 13. Before us, the assessee has filed copy of survey r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for making any disallowance. 17. The Hon'ble jurisdictional High Court in R.B. Jassaram Fatehchand (Sugar Dept.) vs. CIT (supra) held that the books of account of assessee should be accepted, unless on verification, they disclosed any fault or defect which cannot be reasonably and satisfactory explained by the assessee. All other transaction except cash transaction which were verifiable, have been verified and scrutinized by Assessing Officer. The quality of material sold not disputed, the rate at which material was sold were not such as would excite suspicion by reasons of being lower than the prevailing rate. Where there was no necessity to maintain address of cash customer the rejection of books of account were not justified. Now again turning to the facts of the present case, the assessee brought on record that during the relevant period more than 3600 fruit bearing trees were in the farmland. The assessee also furnished the photographs of farmland along with the survey report showing various type of trees, details of which were furnished by ld. CIT(A), copy of which are placed before us vide page no. 14 to 33 of Paper Book. No comment on those documentary evidence were made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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