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2019 (9) TMI 554 - AT - Income TaxCharacterization of income - Treatment to agricultural income as income from other sources - Disallowance of household expenses - HELD THAT:- The assessee has filed copy of the lease deed as noted above which are Dated 08.08.2011 and 05.07.2011. Therefore, these would prove agricultural land taken by assessee on lease in respect of assessment year under appeal, therefore, the very basis of the A.O. to disallow claim of assessee have been negated by the Assessee. Both these lease deeds have been produced before the authorities below supported by copies of the bills of Krishi Upaj Mandi Samiti which clarify that assessee sold agricultural produce through M/s. Jagadamba Traders. M/s. Jagadamba Traders confirmed the selling of the agricultural produce by assessee through them and all the payments are made by cheque/RTGS to assessee through banking channel. Assessee was doing agricultural activities and earned agricultural income, therefore, there was no justification to treat the agricultural income as income from other sources. Further, assessee has explained that he has shown sufficient house hold expenses by self which contain electricity, water charges, medical, vehicle expenses etc. Other family members have also joined him in incurring the house hold expense which was noted above was more than the amount for which addition is made by the A.O. Therefore, there was no justification to make any addition on account of house hold expenses. Both the additions are wholly unjustified.- Decided in favour of assessee.
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