TMI Blog1999 (10) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... were ground Nos. 5 and 6 which involve a single issue, namely, the action of the Department in treating a part of the income shown by the assessee as agricultural income by holding the same to be income earned from undisclosed sources and not from agricultural activities. 3. In the course of assessment proceedings the AO noticed that the return for the block period showed substantial agricultural income. It was noted as a fact that the assessee was the owner of land measuring 1.25 acres up to 1992-93 which went up to 4.62 acres in 1993-94. By means of an order-sheet entry dt. 17th Sept., 1996 the AO asked the assessee to prove the genuineness of the agricultural income shown in the return as also to furnish and substantiate the expenditur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = 5,000 8,600 1991-92 12,060 4,500 x 1.25 = 5,625 6,435 1992-93 12,000 5,000 x 1.25 = 6,250 5,750 1993-94 31,700 5,500 x 4.62 =25,410 6,290 1994-95 59,500 6,000 x 4.62 =27,720 31,780 1995-96 73,378 6,500 x 4.62 =30,030 43,348 --------- 1,02,203" ------------------------------------------------------------ The sum of Rs. 1,02,203 was brought to tax as undisclosed income attracting tax @ 60 per cent. 4. Before us the learned counsel argued at length, and we would say vehemently, contending at the outset that no query was raised at the time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel urged that the addition made by the AO be deleted and relied on the following decisions: (i) Pradeep Batra vs. IAC (1991) 39 ITD 406 (Del); (ii) ITO vs. Bhola (1990) 37 TTJ (Del) 577; (iii) Sunder Agencies vs. Dy. CIT (1997) 59 TTJ (Mumbai) 610 : (1997) 63 ITD 245 (Mumbai); (iv) Harakchand N. Jain vs. Asstt. CIT (1998) 61 TTJ (Mumbai) 223 : (1998) 101 Taxman 324 (Mumbai); and (v) (1994) 127 CTR (St) 21 : (1995) 215 ITR (St) 70- CBDT Circular No. 717 dt. 14th Aug., 1995. 6. The learned Departmental Representative, on the other hand, vehemently supported the order of AO contending that the Tehsildar did not have requisite qualifications to certify the yield from any particular type of land and otherwise also it was not his dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ricultural income and whether there is complete detail and evidence in respect of the expenditure incurred against the agricultural income. A pointed query from the Bench did not elicit any positive information from the learned counsel and as already noted by us the sole reliance was on the letter from the Tehsildar placed on the compilation. In other words, the assessee is not in a position to support the figure of agricultural income stated to have been earned by him during the various assessment years included in the block period. On the other hand, the information obtained from the Krishi Gian Kendra also takes into account an ideal situation where an assessee incurs various types of expenditure, has complete agricultural implements and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n is an intimation under s. 143(1)(a) for asst. yr. 1996-97 which shows total income of Rs. 11,953 and agricultural income of Rs. 75,830. It is also noticed from the compilation that the assessee along with the returns has filed P L a/c, details of interest income as also the balance sheet reflecting various assets both movable and immovable. Not a single piece of incriminating evidence has been found during the course of search and seizure which would show any undisclosed income on the part of the assessee. The entire assessment order refers only to the agricultural income earned in various assessment years comprising the block and the entire exercise of the AO is in the direction of trying to prove that the quantum of agricultural income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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