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2013 (8) TMI 521 - AT - Income TaxUnexplained investment under section 69 of the Income Tax Act – Claimed by assessee that cash balance of Rs.9,49,500 was available as on 31-03-2003; therefore, sufficient cash balance is available with the assessee for making a deposit of Rs.99,052 in the personal account of the assessee maintained with SBT - Assessing officer has not examined the availability of the cash balance as on 31-03-2003 – Held that:- Since the assessee has filed details of transactions and claims that sufficient funds are available, this Tribunal is of the considered opinion that the details filed by the assessee needs to be examined by the assessing officer – Matter remanded back to the Assessing officer. Addition as income from other sources - Selling of trees which were grown spontaneously for which there is no cost of acquisition - Sale consideration received on sale of the trees which were grown spontaneously without any human aid – Held that:- Trees were grown spontaneously in the property purchased in the year 2001 - As per judgment in the case of Suman Tea & Plywood Industries (P) Ltd [1997 (3) TMI 81 - CALCUTTA High Court], wherein it has been held that sale of trees grown spontaneously as not taxable - Receipt on sale of trees grown spontaneously has to be treated as capital in nature and since there is no cost of acquisition, it cannot be assessed as taxable income - Calcutta High Court judgment in the case of Suman Tea & Plywood Industries (P) Ltd (supra) may be squarely applicable to the facts of the case – Therefore, sale of trees grown spontaneously has to be treated as capital in nature and since there is no cost of acquisition, it is not liable for taxation. Estimation of agricultural income - The copies of the data said to be collected from the Agricultural Officer is not available on record. Details regarding varieties of banana cultivated are also not on record – Held that:- In the absence of the details of varieties of banana cultivation on the land, it is not known how the Agricultural Officer was able to provide the data. The price of each variety of banana would depend upon the prevailing market rate during the relevant assessment year. Moreover, when the assessee claims that he is maintaining the books of account for cultivation, without finding fault with the books of account maintained for cultivation, estimation of agricultural income may not be justified. Therefore, if at all there was any defect in the books of account, it is for the assessing officer to reject the same after examination and thereafter resort to estimation, if required. But without examining the books of account, solely on the basis of the data collected from the Agricultural Officer, the profit cannot be estimated. Accordingly, the matter needs to be re- considered. Hence, the issue is remitted back to the file of the assessing officer.
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