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2022 (10) TMI 127 - AT - Income TaxPenalty u/s. 271D - amount paid by the Directors / Shareholder towards share capital and unsecured loans in the form of cash - HELD THAT:- We are of the considered view that the amount paid by the Directors / Shareholder towards share capital and unsecured loans in the form of cash does not attract the provisions of section 269SS of the Act and penalty U/s. 271D cannot be levied on the same. We therefore find no error in order of the Ld. CIT(A) and hence no interference is required in the order of the Ld. CIT(A) and dismiss the grounds raised by the Revenue. Nature of income - agricultural income or income from other sources - AO allowed a sum from sale of coconut and bananas but disallowed a sum from sale of Eucalyptus - HELD THAT:- As noted from the paper book that the assessee has been regularly admitting the agricultural income in the earlier assessment years. It was also not disputed by the Ld.AO in earlier years. It is also noted that the statement recorded U/s. 131 of the Act by M. Rama Rao does not have any evidentiary value and cannot be enforced upon. We also find from the paper book that the assessee has filed a letter from the Sarpanch of Vaddangi Gram Panchayat regarding the planting of Eucalyptus trees in the assessee’s lands. The submission of the Ld.AR that harvesting of Eucalyptus trees will take 4 to 5 years cannot be denied. The assessee in his statement has accepted the fact that they used to get Rs. 1 lakh to Rs. 1.5 lakhs per Acre from the agricultural operations. In the sale of agricultural produce viz., Coconut grove, Paddy and Eucalyptus, the receipt of cash is common among agriculturists. We find merit in the arguments of the Ld. AR that assessee has engaged in agricultural activities, not contested by the Revenue, and therefore we are of the considered view, considering the 13½ acres of wet and dry lands owned by the assessee, it can be reasonably estimated that the assessee would have earned Rs. 7 lakhs per annum during the impugned assessment year in agricultural activity carried on by him from his agricultural lands of13 ½ Acres. We therefore direct the Ld. AO to consider the agricultural income of Rs. 7 lakhs. Accordingly, the grounds raised by the assessee are partly allowed. Expenses incurred by the assessee through Credit Cards - HELD THAT:- Assessee has clarified before the Revenue that there Is withdrawals from the capital account and accommodation from friends - The assessee has also offered the difference amount due to the inability of the assessee to produce evidence for the same. AO has rightly distinguished the facts and in the absence any cogent evidence we are of the considered view that the Ld. CIT(A)’s decision is in accordance with law and based on the facts and circumstances of the case and therefore we find no reason to interfere with the of the Ld. CIT(A) on this issue. It is ordered accordingly. Thus, this ground raised by the assessee is dismissed.
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