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2016 (3) TMI 1090 - AT - Income TaxAgricultural income - Held that:- The evidence and material on record clearly proved that assessee is owner of 142 acres of land which have been cultivated as per girdavri record produced. The claim of the assessee was not rebutted by the AO in his comments to earn agriculture income. The assessee in the Paper Book have also filed certificate from the buyer showing agriculture produced purchased by them and paying the amount through banking channels which is supported by the bank certificate. Therefore, Ld. CIT(A) was justified in holding that assessee earned agriculture income. It was also found from the record produced that the land held by the assessee was capable of giving only one crop depends upon the seasonal rain. The assessee however cold not produce any evidence that the land was being cultivated through Hissedari therefore, Ld. CIT(A) was justified in holding that entire claim of agriculture income cannot be accepted. However, the materials on record and the huge land holding held by the assessee, cultivated by the assessee and that sale proceeds of agriculture produce received through banking channels clearly supports the claim of the assessee of earning of the substantial agriculture income therefore, Ld. CIT(A) was not justify in holding that claim of having earned agriculture income cannot be accepted beyond sum of ₹ 10,000/- per acres. Thus we accept the claim of assessee of earning agriculture income @ ₹ 15,000/- per acres as against ₹ 10,000/- confirmed by the Ld. CIT(A). We therefore accept the agriculture income earned by the assessee is a sum of ₹ 21,30,000/- as against the total claim made by the assessee of ₹ 28,28,260/-. We therefore restrict the addition to ₹ 6,97,260/-. Thus the orders of authorities below are set aside and modified to the extent that AO shall accept the agriculture income is a sum of ₹ 21,30,000/- and restrict the addition on account of income from other source is a sum of ₹ 6,97,260/-. - Decided partly in favour of assessee.
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