9911796707
TMI Blog2023 (1) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... of rubber are collected by the Rubber Board - As noticed that the yield of coconut has been estimated, again on the average yield rate and the prices of coconut has been taken on the average rate for the year. We see merit in the contention that the estimation of the agricultural income is done on valid basis and not estimated on adhoc basis. It is also noticed that the assessee has been declaring the agricultural income on estimated basis in earlier years which has not been disputed by the revenue. AO has estimated the agricultural income of the assessee to Rs.36,00,000 and the basis on which this estimate is made is not coming out clearly in the order of the AO and this contention of the assessee has not been looked into by the CIT(A) except for stating that the said estimate is reasonable. When the assessee has submitted the possible evidence for estimating the income, the same cannot be brushed aside without recording any adverse finding. Revenue has not brought anything on record to show that the income estimated and the percentage of expense claimed by the assessee is not correct. AO has also not recorded any supporting to show how the agricultural income is estimated at Rs.3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld estimated or the market price at which the income was estimated. Without pointing out any adverse factor, the Assessing Officer cannot simply reject the estimate. The Hon. ITAT Mumbai in 2021 (3) TMI 264 in the case of NITTA JATIYA (ACIAS & NITAJATIA) Vs. DCIT, Central Charge Range 7(1) Mumbai, at para 5 observed "In this case, we note that both of the authorities have failed to discharge their duties properly as none of the parties have brought any substantial material on records to prove that the assesse has incurred expenses over and above what has been stated by the assesse ". In our case, no material has been gathered or produced to show that the income estimated by the assessee is inflated or from the land holding and crops cultivated the said income cannot be generated. Again, the Hon. ITAT Surat in 2022(1) TMI 52 Shri Rajeshbhai Gijubhai patel, Shri Pankajbhai Gijubhai Patel Vs. CIT Surat at para 22 observed as follows:- "We must hasten to add here that in this case, there is no finding that any of the details supporting the assesse in its return were found to be in correct or erroneous or false ". In our case also, nether the Assessing Officer nor the CIT (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quired for wage payment to the rubber tappers. For years under consideration the assessee had estimated the agricultural income as per below details - Particulars AY 2012-13 Amount (Rs.) AY 2013-14 Amount (Rs.) Estimated Income from rubber (net of expenses at 25%) 33,23,424.00 26,97,086.00 Estimated Income from Coconut (net of expense at 25%) 11,25,000.00 13,48,704.00 Estimated income from Sale of mattilogs 1,00,000.00 2,00,000.00 Estimated income from Sale of misc. items like Plantain, etc. 2,00.000.00 3,00,000.00 Total Estimated agricultural income 47,48,424.00 45,45,790.00 Agricultural Income offered 45,00,000.00 45,00,000.00 3. The assessee filed the return of income on 30.11.2012 declaring income of Rs.33,48,920/- for Assessment Year 2012-13 and on 15.10.2013 declaring an income of Rs.59,69,710/- for Assessment Year 2013-14. The case was selected for scrutiny under CASS and the notice u/s.143(2) was duly served on the assessee. During the course of assessment proceedings, the AO noticed that the assessee has only estimated the agricultural income and accordingly called for further details. The assessee submitted the details as per the below table to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t these are not enough to justify the huge agricultural income. The AO held that the assessee had not maintained any books of accounts with regard to the agricultural activities giving actual details of agricultural income. Accordingly the AO estimated the agricultural income of the assessee at Rs.36,00,000 and made addition towards the difference amount of Rs.9,00,000. On further appeal the CIT(A) held that the estimation of agricultural income by the AO is reasonable since the assessee has not maintained any books of accounts and accordingly upheld the order of the AO. Aggrieved the assessee is in appeal before the Tribunal. 10. The ld AR submitted that the estimation of the agricultural income is recognised in law for purposes of taxation and when books of accounts are not maintained for a source of income, a reasonable estimate is made and the income is subjected to tax. It is also submitted that once the AO does not find any defect or error, the estimate made by the assesse has to be accepted. The Ld AR also submitted that the assessee has been consistently showing the agricultural income in the same range from AY 2008-09 and the revenue has accepted the estimated agricultura ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finding has been reported by the inspector. During the course of hearing our attention was drawn to the statement of yield for various years by the Rubber Board of Kerala (page 8 & 9 of paper book) where it is mentioned that the average yield of rubber per hectare of Palakkad District is stated to be 2011-12 - 1940 kgs/ ha and 2012-13 - 1913 kgs/ha. The same report also has details of price per kg of rubber. It is therefore argued by the ld AR that the estimated agricultural income is very well supported and accordingly there is no reason for the AO reject the estimate. The ld AR also argued that the assessee has estimated the income from rubber based on the average yield for different geographical locations as per Rubber Board data and the prices of rubber are collected by the Rubber Board. It is also noticed that the yield of coconut has been estimated, again on the average yield rate and the prices of coconut has been taken on the average rate for the year. From these facts we see merit in the contention that the estimation of the agricultural income is done on valid basis and not estimated on adhoc basis. It is also noticed that the assessee has been declaring the agricultural ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
