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2023 (8) TMI 1280 - AT - Income TaxCorrect head of income - Agricultural income or business income or income from other sources - AO taken into account agricultural income partially and treated the part as business income/income from other sources - AR submitted that the assessee has not carried out any business activities and was not supposed to maintain books of accounts as the assessee is mainly engaged in agricultural activities of growing of Flower Plants, Vegetable Plants and various types of Lawns during the year under consideration - HELD THAT:- As the assessee is carrying out the agricultural activities and sale of plant to the particular party and this ledger shows the transaction to the extent of Rs. 67,080/- and the difference of Rs. 18,625/- was due to booking of assessee’s bills lately which is reflected from the documents produced before the Assessing Officer as well as before the CIT(A). Thus, ground no.1 is allowed. Activity of agricultural in nature in respect of engaging in nursery activities of growing various types of lawns, flower plants and vegetable plants and they cannot be considered as commercial activity for treating the same as business income. The assessee has produced relevant copies of the sales bills as well as the transaction details from Bank Account as well as books of account including Ledger and Invoices. Hence, ground nos.2 & 3 are allowed. Agricultural expenses, the assessee has shown the sales bills of all the parties including M/s. Green Leaf and at no point of time the Assessing Officer has disputed that the said agricultural income was in fact of commercial activities related to business income. Thus, ground no.4 is allowed.
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