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2017 (7) TMI 173 - AT - Income TaxAddition u/s. 153C - addition made under the head income from other sources and allowing as agricultural income - Held that:- The agricultural income declared by the assessee as returned ought to be accepted. Accordingly since the entire income of the assessee is from agricultural activities and hence exempt under section 10(1), the above issue will no longer survive. Further, in the order under section 143(3) passed earlier the AO had treated the same as agriculture income. Addition made on account of loan account written off invoking provisions of Section 41 - Held that:- Even if interest portion is considered as taxable as per the provisions of section 41(1) of the Act, the same has been claimed as deduction in earlier years against the agricultural income and hence remission of the same in current year ought to be treated as agricultural income and therefore, exempt u/s 10(1) of the Act. No incriminating material was found during the course of search, accordingly, addition made under section 153C in respect of assessment year which has already been completed under section 143 (3) has no legs to stand. Appeal of the assessee is allowed
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