2025 (6) TMI 888 - AT - Income Tax

Bogus agricultural income - HELD THAT - We find that the assessee is owner of agricultural land for which the necessary details/evidences were filed before the AO. Admittedly there is no dispute as to the ownership of the agricultural land of the assessee and in A.Y. 2005-06 and 2006-07 even in the assessments framed u/s 143(3) the department has accepted the agricultural income from the said land. We note that in A.Y. 2006-07 the agricultural income was accepted at Rs. 64, 28, 220/- and in for A.Y. 2005-06 the agricultural income was Rs. 1, 89, 07, 751/-. Even during the year the assessee has produced a certificate from the local revenue authority certifying the land to be Adangal which means agricultural land and also specifies the produce cultivated and grown by the assessee. Thus addition made by AO is without any basis. Appeal of the assessee is allowed.

Summary

The Appellate Tribunal (ITAT Kolkata) addressed appeals by the assessee against the National Faceless Appeal Centre's order confirming an addition of Rs. 23,59,540 as bogus agricultural income for AY 2018-19. Despite a 77-day delay in filing, the Tribunal condoned the delay, finding it "bonafide and genuine."The key issue was the disallowance of agricultural income claimed as exempt. The assessee, owner of agricultural land, had previously declared and had accepted agricultural income in AY 2005-06 and 2006-07, with assessment orders confirming such income under section 143(3). The assessee also submitted a certificate from the local revenue authority (Adangal) verifying the agricultural nature of the land and produce.The Tribunal held that "the addition made by the ld. AO is without any basis," noting no dispute over land ownership or agricultural activity. It set aside the CIT(A)'s ex-parte order and directed deletion of the addition. The Tribunal allowed both appeals, applying the same reasoning mutatis mutandis to the second appeal.