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2021 (4) TMI 844 - AT - Income TaxAgricultural income OR Business income - AO has noted that the assessee is exporting mangoes from his own garden and purchasing and selling the same and showing it as his agricultural income - CIT(A) after considering the detailed explanation given by the assessee stated that the entire sale proceeds by the assessee cannot be treated as a business income and allowed the appeal filed by the assessee - HELD THAT:- The assessee is having 15 acres of mango garden and he is cultivating the same and the yield from the mango garden exported to Singapore and Malaysia. Accordingly to the AO, the assessee purchasing the mangoes apart from the production from his own mango garden exporting the same to Singapore and Malaysia, therefore he is of the opinion that the exporting activity carried by the assessee is a business activity and he estimated the agricultural income for acre is ₹ 35,000/- and remaining amount treated as a business income. In the assessment order, the AO has not established that the assessee is purchasing mangoes and exporting. We find that it is an assumption of the AO to come to the above conclusion without any material. AO further came to the conclusion that the yielding from the assessee’s mango garden cannot be more than 90 tons as against 168.3 tons, based on the report of the District Collector, Thiruvallur. This fact is examined by the Ld. CIT(A) at length and he gave a finding that the yielding of the mangoes depend upon the soil, maintenance, variety of mangoes and other aspects and the report of the District Collector is not a conclusive proof. We are fully agreeing with the Ld. CIT(A) on this count. We are also of the opinion that the report of the District Collect, Thiruvallur is not a conclusive proof. The Ld. CIT(A) has considered all the facts and came to the conclusion that the activity carried by the assessee is an agricultural activity and directed the AO to delete the addition. We find no reason to interfere with the order passed by the Ld. CIT(A). - Decided against revenue.
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