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2022 (6) TMI 1096 - AT - Income TaxSource of Cash deposited into the Bank Account - Agricultural income - advances received from customers in land transactions - assessee is an individual engaged in the business of trading in land on very small scale, helping his father and mother who running a tea shop at Adgaon as conducting agricultural activity on land taken on rent - HELD THAT:- The net agricultural income is not possible in view of possession of agricultural land in 52R which is not sufficient. It is also noted the sale bills of agricultural produce were furnished before the AO but however the AO held the bills obtained from merchant who is non-existent. There is no dispute with regard to possession of agricultural land whether it is own or on rent by the assessee and the balance amount out of the addition made by the AO u/s. 68 are out of gross agricultural income or turnover on account of land transactions activity. The assessee also furnished bills substantiating production of agricultural produce. CIT(A) ought to have considered the agricultural activity. It is also noted it was claimed by the assessee that the advances received from customers were refunded before year end but we find no such verification done by both the authorities below to confirm whether such advances were refunded or not. AR also did not bring on record anything to show that the advances from customers refunded before year end either before the CIT(A) nor before us. We deem it proper to restrict the addition to an extent of Rs.12,90,000/- being 50% of Rs.25,80,000/- on account of non furnishing of requisite details regarding the refund made to customers on account of advances received on land transactions. Thus, the order of CIT(A) is modified as indicated above accordingly and grounds raised by the assessee are partly allowed.
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