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2016 (7) TMI 57 - ITAT BANGALOREDisallowance of 20% of the claim of expenditure not fully supported by vouchers - Held that:- Though, the AO does say that the expenditure was not fully supported, he has not pointed out even a single specific instance. His conclusion that there were some personal elements in the claim of expenditure is also not supported by any specific findings. We find the disallowance to have been made purely on surmises. Such disallowance stands deleted. - Decided in favour of assessee. Adoption of cost of the shed - capital gain computation - Held that:- As per the assessee this valuation report was obtained by the purchaser for raising a loan. Even if we accept the contention of the assessee that there was indeed a building in the plot, it is a fact that the balance sheet of the assessee did not reflect the cost of the building. On the other hand, it is an admitted position, that the HUF of which the assessee is the Karta had filed its return showing the cost of the shed in its balance sheet. The said HUF was also assessed to tax. When all these are seen together, in our opinion, it is clear that the building was owned by HUF, whereas the land was owned by the assessee. In such a situation, for computing the capital gains the assessee could not have deducted the cost of construction, since the construction did not belong to the assessee. Nevertheless, we find that the ld., CIT(A) in all fairness, had directed the AO to give the benefit of the cost of shed, as shown by the HUF in its balance sheet, while computing the capital gains of the assesee. As already mentioned by us, we cannot accept the pleading of the assessee that the building belonged to him, but not to HUF. - Decided against assessee Agricultural income not accepted but considered under the head "Income from other sources” - Held that:- It might be true that that assessee was having 8 acres of agricultural land wherein Coffee was cultivated. However, mere ownership of agricultural property would not transform itself into income. The claim of assessee was that it had earned an agricultural income of ₹ 4,85,000/- from 8 acres of Coffee plantation. Assessee was not able to produce any evidence except for a certificate from the Revenue Inspector, Srimangala Hobli which gave details of crops grown. Assessee did not show anything to prove the sale of agricultural produce or receipts there from. In such situation, we cannot fault the ld. AO for following the NABARD guidelines. As per such guidelines income from a Coffee plantation would be in the range of ₹ 1000/- to 26,000/- from the 5th year to 9th year. The AO had taken an average of ₹ 12,000/- and estimated the agricultural income at ₹ 96,000/-. The average of ₹ 26.000/-and ₹ 1,000/- would be ₹ 13,500/- and not ₹ 12,000/-. Accordingly, income from 8 acres can be fairly estimated at ₹ 1,08,000/- therefore, we direct the addition to be restricted to ₹ 3,77,000/-. - Decided in favour of assessee in part
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