9911796707
TMI Blog2024 (5) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... s situation will not be applicable in case of a big farmer where the farmer is holding large land and earning a good sizable agricultural income, for such farmers it is feasible and easy to maintain books of accounts as they have necessary infrastructure to maintain the accounts department and books of accounts. The assessee under consideration is a small farmer, and he submitted before the assessing officer the statement of Bardoli Sugar, submitted bill of Shree Khedut Sahkari khand Udyog Mandli and bank statement showing withdrawal and deposit of cash in the bank account. We note that assessee has deposited cash in the bank account out of agricultural income and out of earlier cash withdrawn from the bank, (that is, unused cash out of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in assuming that the agriculture income is not justifiable even though agriculture bills and Statement from Bardoli Sugar factory were produced. Even though all the history of agriculture income as well as statement of past years from Bardoli Sugar Factory treated as alleged income from other Sources. 3. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in making addition of Rs.7,22,810/- on account of entire agriculture income treated a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Rs.7,22,810/- (Sugar Payment credit in bank account) 5. On perusal of the reply, the assessing officer noted that assessee has not shown any quantity of production during the year. Further, vide notice u/s 142(1) of the Act dated 12.11.2019, the assessee has been requested to furnish the requisite details to substantiate the claim of agriculture income during the year. Therefore, a show cause notice has been issued by the assessing officer on 06.12.2019, which is reproduced by the assessing officer on page no.2 of the assessment order. In response to above show- cause notice, the assessee submitted his reply before the assessing officer, which is reproduced below: The F.Y. 2016-17, I have received agriculture income from Shree Khedut Sahk ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee and held that assessee did not maintain agricultural production in quantity and did not submit details of bills/vouchers for incurring expenditure on agriculture production during the year, hence, the entire agriculture income of Rs.7,22,810/- was brought to tax as income from other sources and added to total income of the assessee u/s 56 of the I.T. Act. 7. Aggrieved by the order of the Assessing Officer, the assessee carried the matter in appeal before the ld. CIT(A), who has confirmed the action of the assessing officer. The ld CIT(A) noted that for incurring any type of income, the expenditure is also to be incurred and maintaining the records for the agriculture expenditure is primary duty of the assessee to substantiate the agri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed the fact of the case including the findings of the ld CIT(A) and other materials brought on record. We note that assessing officer made the addition in the hands of the assessee mainly on the ground that assessee had not maintained any Books of Account, bills/vouchers for incurring expenditure on agricultural production during the year. We note that it is not expected from a small and poor farmer to maintain full accounts department and to maintain books of accounts. In India, by and large, most of the farmers are illiterate and poor and in some cases their land holding is also small, hence it is not feasible to maintain books of accounts. However, this situation will not be applicable in case of a big farmer where the farmer is holding ..... X X X X Extracts X X X X X X X X Extracts X X X X
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