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2023 (6) TMI 256 - ITAT MUMBAIInflated agricultural production of grapes - CIT(A) deleted addition - whether CIT-A has failed to consider the draft plan which showed that there was inflation of agricultural income by the assessee? - HELD THAT:- As during the course of search proceedings a list of 30 parties were found from M/s Nana Shelke (General manager of Vineyard operation) wherein it was alleged that the grapes were purchased at inflated rates from these 30 parties. Assessee’s name has not been mentioned anywhere in the list. The assessee explained during the course of assessment proceedings that he had cultivated high quality of grapes where were used in manufacturing of high premium wines. In their respective statement the both the employees as discussed supra had provided the data available with them without considering the fact that the new plantation of grapes were planted every year and at the same time there was certain grapes plantation which gets old or infected due to some disease or pest attacks and this leads to uprooting of the infected plantation after which new plantation was done. The assessee has cultivated high quality grapes and sold the entire grapes to the company which has been verified from the record of raw material and consumption and no discrepancy was found in the stock of the company during the search and seizure action carried on the company. During the course of appellate proceeding before us the Counsel has also referred the copy of Income Tax Settlement Commission order dated 27.09.2019 adjudicated in the case of M/s Sula Vineyard Pvt. Ltd. wherein they had finally come to the conclusion that inflation was to be restricted to approximately 6% and the company had accordingly offered the same to tax. The Settlement Commission has treated the statement of Mr. Raman Bhawar and Vinayak Nehe as not reliable for the purpose of calculating inflating grapes purchases. Further in the list of parties from whom the company used to purchase grapes at inflated rate, the assessee’s name was not at all present there. - Decided against revenue.
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