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2022 (1) TMI 52 - AT - Income TaxCharacterization of income - Disallowing the claim of agriculture income by treating the same as income from other sources - HELD THAT:- As there is no finding that any details supplied by the assessee in its Return were found to be incorrect or erroneous or false. It is not necessarily the agriculture income of current year only, as the past savings of the earlier years out of agriculture income were deposited in bank accounts or applied in the current year. We note that net holding of the agriculture land of this assessee and his family members is at 3,84,250.77 square meters, and nature of the crops cultivated by the family are sugar cane, jowar, tuwer, fruits, paddy, vegetables etc. To prove land holding, assessee submitted copies of Forms 7 x 12, which shows joint ownership of his and his family members as well as the types of crops grown in the land belonging to the assessee and his family members. The assessee also submitted before ld CIT(A), balance sheet, cash flow statement. The assessee submitted the agricultural income account. The assessee submitted ledger account of Chalthan Khand Ydhyog Mandali. CIT(A) has not made any adverse finding in any of these documents even, though all the details were furnished by the appellant before him. CIT(A) ought to have examined all these details and refuted / rejected them, with a cogent adverse findings and discernable line of reasoning, in order to arrive at a conclusion. On the contrary, the ld CIT(A) has just brushed aside these evidences without even a word on why they are not acceptable. It is a well settled Law that when an assessee has all the possible evidence in support of its claim, they cannot be brushed aside based on surmises. The additions have been made purely on selective misinterpretation, without dealing with the explanations/ evidences of the assessee. Besides, no incriminating material were found by the search team, hence, no addition can be made for assessment years 2008-09 to assessment years 2010-11, without incriminating material, as the time limit for completion of assessment has already expired when the search was conducted for assessment years 2008-09 to assessment year 2010-11. Hence, we are not inclined to accept the contention of the Ld CIT(A) in sustaining the addition and enhancing the addition based on surmises and conjectures, and hence the addition so sustained and enhanced are deleted. Hence this ground of the assessee is allowed.
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