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2012 (7) TMI 419 - AT - Income TaxExpenditure in respect of poultry farming - Assessing Officer has added back the cost of purchase of Emu birds as well as expenses incurred towards feeing of the birds – Held that:- Assessing Officer has failed to appreciate the fact that without purchase of Emu birds, sale would not have been possible, so the cost of acquisition of Emu birds and the maintenance/feeding cost which the assessee has alleged not to have claimed during the assessment year 2007-08 deserves to be allowed as business expenditure – In favor of assessee Agricultural income - Addition on account of income from sale of coconuts – Assessing Officer while treating the income from sale of coconut trees as income from other sources has observed that it is not acceptable that Rs. 2,400/- worth of trees would have yielded an amount of Rs. 66,820 – Assessee has about 275 coconut trees out of which he has planted 200 coconut trees in the year 2004-05. The coconut trees start yielding fruit in three years time and it was during the relevant assessment year that for the first time, the trees planted by the assessee gave fruits and the assessee was able to earn Rs. 66,820/- from the sale of coconuts – Held that:- Assessee has not produced any concrete evidence to show that it has earned income from sale of coconuts - assessee is a small time farmer. He may not have maintained record of sale of coconuts - 50% income from sale of coconut is directed to be considered as Agricultural Income. Regarding income from sale of turmeric - contention of the Assessing Officer that there is no correlation between the date of alleged sale of turmeric and the harvesting season of the produce is not tenable - stand of the assessee throughout has been that the assessee use to sell the produce only during the time when he used to get maximum price for the crop – Held that:- Assessing Officer made the addition only on the basis of presumption that since the harvesting season and sale of crop do not coincide, the income cannot be considered as agricultural income - addition made by the Assessing Officer deleted
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