9911796707
TMI Blog2022 (7) TMI 493X X X X Extracts X X X X X X X X Extracts X X X X ..... getables and the sale of such products in the market. At the same time, holding of 38.86 acres of agricultural land is not in dispute. Therefore, in our opinion, some agricultural income should be made available to the assessee. On being a pointed query by the Bench at the time of hearing, the learned Counsel for the assessee submitted that the land is situated at Kurnool and rainfed. Considering the totality of the facts of the case and in the interest of justice, the benefit for the A.Y 2003-04, for the A.Y 2004-05 and for the A.Y 2005-06, as agricultural income, in our opinion, will meet the ends of justice. We hold and direct accordingly. The order of the CIT (A) for the above 3 years are accordingly modified and the AO is directe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration u/s 132 of the I.T. Act was conducted at the residential and business premises of the assessee. In response to the notice u/s 153A, the assessee filed revised return of income on 30.11.2009 admitting income originally returned. During the course of assessment proceedings, the Assessing Officer noted that over the years and by the date of search, the agricultural income of the assessee is Rs.23,01,699/-. For the A.Y 2009-10, the agricultural income was shown at Rs.9,28,856/-. Thus, the total agricultural income comes to Rs.24,43,809/-. The Assessing Officer therefore referred to the statement recorded u/s 131 of the I.T. Act on 1.12.2008 wherein the assessee was asked to explain the agricultural income shown by him which is as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income. In all the years, the Assessing Officer has disallowed the agricultural income. The table below brings out the quantum of the full disallowance made by the Assessing Officer of the said agricultural income claimed by the appellant in each of the year under consideration. A.Y Income from other sources (in Rs.) 2003-04 81,485 2004-05 90,861 2005-06 95,377 2006-07 0 2007-08 1,08,410 2008-09 11,38,820 2009-10 9,28,856 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at it has evidence but failed to furnish anything in this regard but for the entry in the Tally software. The appellant was further questioned and it was asked regarding the yield etc of the claim of vegetables and flowers grown but the appellant inspite of its claim that it bas receipts of the sale of the same bas failed to produce anything bonafide till date and in the concluding question no.8 the appellant accepted that it has no accounts of agriculture activity but only sale receipts but the same were neither produced as a proper evidence at any point in lime. Therefore, the only place the said agriculture income was found mentioned is in the return of income of the appellant and its tally software which are mere entries. The Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee and the same is not in dispute. He submitted that the lower authorities have disregarded the agricultural income declared by the assessee on the ground that the assessee failed to produce any evidence such as the bills and vouchers for the agricultural activities being carried out and the yield of vegetables and flowers grown by the assessee in the said land. He submitted that no doubt the assessee failed to produce any such documentary evidence to the satisfaction of the Assessing Officer/CIT (A) but the fact remains that the assessee is holding 38.86 acres of agricultural land and some benefit should be given towards agricultural income. 8. The learned DR, on the other hand, strongly supported the orders of the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e failed to produce any evidence regarding the expenditure towards carrying out of such agricultural activities by him, the yield of flowers and vegetables and the sale of such products in the market. At the same time, holding of 38.86 acres of agricultural land is not in dispute. Therefore, in our opinion, some agricultural income should be made available to the assessee. On being a pointed query by the Bench at the time of hearing, the learned Counsel for the assessee submitted that the land is situated at Kurnool and rainfed. Therefore, considering the totality of the facts of the case and in the interest of justice, the benefit of Rs.25,000/- for the A.Y 2003-04, Rs.30,000/- for the A.Y 2004-05 and Rs.35,000/- for the A.Y 2005-06, as ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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