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TMI Blog2021 (10) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... y the CIT(A)-49, Mumbai, dated 20.03.2020, which in turn arises from the order passed by the A.O u/s 143(3) of the Income Tax Act, 1961 (for short Act ), dated 29.12.2017 for A.Y. 2015-16. The assessee has assailed the impugned order on the following grounds before us: On the facts and circumstances of the case and in law, the Learned Commissioner of Income Tax (Appeal)-43. Mumbai has erred in confirming the disallowance of 20% of Agricultural Income i.e. ₹ 21,45,698/- made by Learned Assessing Officer by erroneously treating it as Unexplained cash credit under section 68 of the Income-tax Act, 1961, despite the fact that the appellant had duly exhibited the source of the agriculture income during the course of proceedings. 2. Briefly stated, the assessee had e-filed her return of income for A.Y 2015-16 on 29.08.2015, declaring an income of ₹ 1,46,34,160/- a/w agriculture income of ₹ 1,03,02,193/-. The return of income filed by the assessee was processed as such u/s 143(1) of the Act. Subsequently, the case of the asesssee was selected for scrutiny assessment u/s 143(2) of the Act. 3. During the course of the assessment proceedings, it was observed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rees were growing up. From local sources, people told that no agricultural activity was carried out on this land. Also, the A.O in exercise of the powers vested with him u/s 133(6) of the Act obtained the photographic images of the 4 land parcels of the assessee s family spread over the period 2013 till 2017 form ISRO SAC, Ahmedabad. As per the report furnished by ISRO the following details regarding the agricultural land holding of the assessee was gathered by the A.O: Vihighar Land: We have used the Google earth images for the period front Jan 2073 to December 2016. Overall from the analysts of images, it is concluded that only 30% of the total area marked was under agricultural activity during the period 2014-15. No 3ctiv agriculture was observed for the remaining 70% area of Vihighar land Parcel. Chiple Koproli:- We have used the Google earth images for the period from Jan 2013 to December 2016. Overall, from the analysis of images no active agriculture was observed for the area of Chiple Koproli land parcel Approximately 40 % area of marked land parcel was occupied by (he irregularly grown perennial trees/plantations. seems to be social forestry, need to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uits and vegetables mentioned by the assessee are negligible as compared to the assessee's claims. Even if the assessee's contention of these crops being actually grown is considered the market value of the produce is barely enough To cover the various costs. None of the vegetables mentioned by the assessee are grown round the year as claimed. There are barely any labour charges shown by the assessee. The expenses claimed to be borne by the assessee are insignificant. In Mustafa All Khan vs. CIT(1948) 16 ITR 330 (PC), the court held that income from sale of forest trees, fruits and flowers growing on land naturally and spontaneously and without the intervention of human agency is not agriculture income. Thus the mango sale is not agricultural income. Only income from basic operations of cultivation land and requiring the expenditure of human skill and labour on land is agricultural income as held in CIT Vs Raja Benoy Kumar Sahar Roy (SC) 32 ITR 466, CIT Vs Maddi Venkalasubbayya another (Mad) 20 lTR 151, Papaya Farms Pvt. Ltd Vs PCIT (Mad)325 ITR 60. The assessee's land is situated within the jurisdiction of Municipality of Panvel and is not assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which were not there before the CIT(A) for A.Y 2014-15, held, that the assessee s claim of agriculture income was not to be accepted in toto. It was noticed by the CIT(A) that his predecessor while disposing off the appeals in the case of the assessee for the aforementioned preceding years i.e A.Y.2011-12 and A.Y. 2012-13 had allowed the assessee s claim of agriculture income only to the extent of 80%. Observing, that the evidence which were gathered by the A.O in the course of assessment for the year under consideration i.e A.Y. 2015-16 had formed the basis for reopening of its case for A.Y 2011-12 and A.Y 2012-13, the CIT(A) followed the view of his predecessor and allowed the claim of agriculture income of the assessee to the extent of 80% and disallowed the balance 20% amount. 5. The assesee being aggrieved with the order of the CIT(A) has carried the matter in appeal before us. The ld. Authorized Representative (for short A.R ) for the assessee, at the very outset submitted, that the CIT(A) by relying on the order of his predecessor for A.Y 2011-12 and A.Y 2012-13 had allowed the assessee s claim of agriculture income only to the extent of 80% and had disallowed the balan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2011-12 in ITA No. 4883/Mum/2019 AND A.Y 2012-13 in ITA No.4884/Mum/2019, dated 02.03.2021, therefore, there would be no justification much the less any basis to uphold the disallowance of 20% of the assessee s claim of agriculture income for the year under consideration i.e A.Y. 2015-16. For the sake of clarity, we herein cull out the observations of the Tribunal in its consolidated order for A.Y 2011-12 and A.Y 2012-13 in ITA Nos. 4883 4884/Mum/2019 for A.Y 2011-12 and A.Y 2012-13, wherein the agriculture income disclosed by the assessee in her return of income was accepted as such: 5. After hearing the rival parties, in this case, we notice that undisputedly, the assessee is the owner of the land measuring 22.82 acres in Panvel, District Raigad. We note that the 7/12 extracts downloaded from the official website of Government of Maharashtra has categorized 70% of the land as not fit for agricultural operation. However, it is also undisputed that there were substantial plantations of mango trees and also seasonable vegetables being grown in the said land. The only objection of the AO is that the assessee is having a farmhouse and income was received from the natural activi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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