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2014 (11) TMI 273 - ITAT PANAJIIncome from other sources or agricultural receipts - Site visits and enquires were caused to be made through the inspector who reported that there was no farm existing in which the purported ornamental plants are nurtured or not - Held that:- The assessee has engaged in production of Ornamental Plants - The assessee engaged in business of agricultural production and he has nursery farms by name M/s. Chandeshwar Farms at Survey No.11, Kinaya Xetavaril Moddi, Cotombi, Quepem, Goa, spread across area of 10,150 square meters - The books of account of the assessee has been audited by Charter Accountant u/s. 44AB of the Income Tax Act.1961 and the copy of the audit report along with the return - in the previous year 2006-07 the assessee has carried out the agricultural activities for which return was processed - the AO’s objection is that the assessee has not carried out any agricultural activities - The Inspector was deputed for making enquiry whether the assessee has carried any agricultural activities or not - The Inspector reported that there was some land on which the compound wall with metallic gate on which the name Hariyalee Nursery was fabricated - The compound had some shade nets in which no plants were seen and some plants standing therein distinctly had appearance of plant brought from somewhere and stored - The Inspector has doubted about the genuineness of the agricultural income - The AO recorded the statements of the assessee’s son and he came to conclusion that assessee has not carried any agricultural activities and he has not produced any ornamental plants etc. - the CIT(A) has held that the assessee has carried out agricultural activities which has been verified by the AO - the CIT(A) was of the view that the assessee has carried out agricultural activities - as per the documentary evidence the land exists, therefore, proper course for the AO was to make enquiry from the respective land records officer and he should find out whether any agricultural activities was carried out or not - The AO failed to make the enquiry and he jumped to conclusion that no agricultural activities was carried out - assessee has produced all the documentary evidence to show that assessee has in fact carried out agricultural activities – the order of the CIT(A) is upheld – Decided against revenue.
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