9911796707
TMI Blog2024 (10) TMI 998X X X X Extracts X X X X X X X X Extracts X X X X ..... head income from other sources without any specific material being brought on record to show that agricultural Income were inflated in order to escape the assessment under head Income from Other sources . In our opinion, the AO has merely acted on the basis of surmises and conjectures in adopting the estimation of 50% of Net agricultural income as income from other sources without any basis without carrying out any further verification. The suspicion however strong cannot take the place of proof. In this case, none of the authorities below have brought any substantial material on record to demonstrate that assessee has not earned Income through agricultural sources but from income from other sources . Our view also supports from the fact t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d land details, which clearly established the extent and nature of my agricultural activities. 5. The assertion that no documentary evidence was provided regarding the land holding, crop grown, and income received is incorrect. The necessary documents were submitted, but their relevance and adequacy were overlooked by the appellate authority. 6. The appellant prays for leave to add, modify, delete, or introduce additional grounds of appeal at any time before the appeal is disposed of. 3. Brief facts of the case are that the assessee is an agriculturist. He undertakes agricultural activities in Shivamogga district in the state of Karnataka. The crop he grows is ginger. He undertakes agricultural activities such as ploughing the land, seeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pies of lease agreements, Land Holding details, bills issued by buyers, Details of Agriculture expenses as well as copy of Bank Statements. The ld. CIT(A)/NFAC also observed that the assessee has established the total land used for the cultivation either his own or by taking lease. Further the assessee also established that he had undertaken the cultivation on those lands. However the ls. CIT(A) dismissed the appeal of the assessee on the ground that the assessee had not produced any documentary evidence in this regard. Further, the assessee neither produced the certificate for crop grown nor the details of consideration received on sale of ginger. Further, as the assessee has failed to produce the details of land holding such as extent of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t assessee entered into agreement for harvest of standing crops and for growing one crop in the land of the parties and the agreement was for one harvest or for one crop only. Further the AR of the assessee submitted that the assessee has also uploaded the copies of lease agreements, Land Holding details, bills issued by buyers, Details of Agriculture expenses as well as copy of Bank Statements before the first appellate authority. Both the authorities below on the one hand doubted the claim of entire agricultural income declared by the assessee, however, they have treated 50% of the net agricultural income declared as income from other sources , which is based on pure guess and surmises and without any adverse material on record. 8. The ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m of agriculture income not substantiated by the assessee and on the other hand, concluded the proceedings by adopting Rs. 49,43,510/- i.e. 50% of the net agriculture Income amounting to Rs. 98,87,020/- as income from agriculture and balance Rs. 49,43,510/- as income from other sources . Therefore, we are of the view that although the authorities below have accepted the source of Income from the agriculture activities but reduced the net agriculture income to 50% without any basis that too on their own estimation presumption . 9.1 We are of the opinion that the assessee has established the sources as Agriculture as during the course of assessment proceedings, the assessee had filed the copies of sales bills of ginger. Further, during the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which are exempted u/s 10(1) of the Act would give rise to total income chargeable to tax u/s 4(1) of the Act under the head income from other sources . We are of the opinion that the question of increasing or decreasing of any agricultural income may become irrelevant if income of the assessee is considered solely agricultural in nature and therefore, merely by reducing the exempted Net agricultural income declared by the assessee will not automatically resulted in Income under the head income from other sources unless the AO brought some material on record to show that assessee earns any other income in the nature of income from other sources also. It is also well settled that the AO cannot step into the shoes of an assessee , or question ..... X X X X Extracts X X X X X X X X Extracts X X X X
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