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TMI Blog2020 (1) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... sed. Facts in brief are that the assessee is a limited company and is engaged in agricultural activity. Return of income was filed on 28.09.2016 declaring total income of Rs. Nil and agricultural income of Rs. 21,66,534/- and interest income of Rs. 2,52,333/-. The AO has completed the assessment u/s 143(3) of the Income Tax Act, 1961 on 30.12.2018 determining total income at Rs. 8,24,190/- inter alia making the addition of Rs. 8,24,190/- by treating the agricultural income as non-agricultural. 2.3 By the impugned order, the ld. CIT(A) has confirmed the action of the AO against which the assessee is in further appeal before this Bench. 2.4 It was argued by the ld.AR of the assessee that during the year the assessee has shown sale of Bajra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll facilities and his production is higher than other lands in the area. So the total production in 22.4 Hectare was 803 quintal and average of which is 35.8 quintal per hectare. The AO has given the benefit of 25 quintal per hectare. The production of any crops depend upon fertility of land, irrigation facility, seeds and manure used by him. Since the company is only having agriculture activities and directors are experienced in the field, therefore, the average production of 35.8 is not on higher side when the report of Tehsildar has reported average production of 30 quintal per hectare in the area. Therefore the addition made on assumption and presumption and without considering the actual facts of the case, the addition so made for Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the AO ignoring the submission of the assessee deserves to be deleted. 2.4.3 The ld.AR of the assessee further invited the attention of the Bench to the order of the AO for the immediately preceding Assessment Year wherein the assessment was framed u/s 143(3) of the Act and the AO has accepted the agriculture income on same land holding under the same facts and circumstances to the extent of Rs. 27,00,104/- out of total income declared by the assessee for Rs. 33,94,942/-. The ld CIT(A) has accepted the total income of Rs. 31,27,010/- and only Rs. 2,67,932/- was disallowed. So the total agriculture income accepted by the department was Rs. 31,27,010/- whereas in this year the income is only Rs. 21,66,534/- which was not accepted by the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich is very reasonable looking to the cost of agricultural products such as gwar, mustard etc. However the AO has accepted net agricultural income to the extent of Rs. 13,42,344/- by estimating the agriculture income as per agriculture department/tehsildar reports which is general in nature and based on survey of whole state/district whereas the agriculture yield depends upon quality of land/irrigation facilities, manure and seeds quality and the general report/survey report is not applicable everywhere. From the record, I found that the entire agricultural produce obtained by way of crops is fully vouched and has been sold through Krishi Upaj Mandi. The sale is beyond doubt. The AO has not brought any material on record to disprove the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 775 (SC) 5. State vs. Gulzari Lal Tondon 1979 AIR 1382 (SC) 6. J.A. Naidu vs. State of Maharastra 1979 AIR 1537 (SC) Further more, I also observed that in the immediately preceding year the scrutiny assessment was framed and agricultural income so disclosed by the assessee was accepted by the Department at Rs. 31,27,010/- whereas during this year the Department has accepted only a sum of Rs. 21,66,534/- as against disclosed agricultural income of Rs. 27,00,104/-. 2.6.1 In view of the above discussions, I do not find any justification for the disallowance of agricultural income of the assessee so made by the AO and confirmed by the ld. CIT(A). 3.0 In the result, the appeal of the assessee is allowed. Order pronounced in the open cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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