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2024 (3) TMI 302 - ITAT MUMBAIIncome from undisclosed sources - addition of agricultural income - HELD THAT:- Undoubtedly, the assessee has 1/7th share in agricultural land situated at village Rajdev Tehsil Dungargarh, District Bikaner, Rajasthan. The total land holding pertaining to the assessee is ₹33.24 acres. This land holding is undisputed. In the land records there are certain agricultural produce mentioned with respect to each of the year for past six years. The assessee has shown agricultural income in the range of ₹1.68 lacs to ₹1.98 lacs. With respect to the proof of sale of agricultural produce the assessee has also submitted the agricultural produce marketing committees receipts on sample basis. Undisputedly, assessee has not submitted complete details of the agricultural produce for all these years. On looking at the holding of the agricultural records of land holding, the agricultural produce mentioned there in and some of the bills of APMC produced before us clearly show that assessee is engaged in agricultural activities. Now the only issue remains is whether in absence of complete details of sale of agricultural produce the income shown by the assessee is acceptable or not. We find that on the basis of land holding, the assessee has shown annual agricultural income of ₹6000/- per acre. Thus we find that such income cannot be excessive and cannot be considered as income from undisclosed sources. Therefore, the addition made by AO of agricultural income shown by the assessee as undisclosed income for A.Y. 2013-14 to 2018-19, is unsustainable and deserves to be deleted. Coming to the A.Y. 2019-20, where the additions of ₹14 lacs is made, the source is explained by the assessee being ₹ 12 lacs out of past savings - On looking at the income offered by the assessee for A.Y. 2013-14 till 2019-20, it is apparent that assessee has disclosed total income of commission and bank interest for all these years of approximately ₹10 lacs. Even after accounting for all expenditure out of this sum, the savings of only ₹1,60,000/- being 5% of his other income cannot be disbelieved. Therefore, the additions to the extent of ₹12 lacs in the hands of the assessee out of ₹14 lacs are explained. Remaining sum which assessee has stated to be belonging to her sisters is supported by an affidavit. AO hough issued notice u/s 133(6) of the act to her which were not replied to. But that does not go against the assessee. Therefore, looking at the smallness of the amount and the affidavit of her sisters stating her Permanent Account Number the addition of ₹ 2 lakhs comprising in total addition of Rs 14 lacs in the hands of the assessee is not sustainable. The reason of the AO that the above sum was found in the locker in the denomination of new notes of ₹2000/-. However, there is no evidence available with the Revenue authorities that new notes were placed in the locker. Therefore, solely on that basis, in view of the explanation supported with the evidence which is provided by the assessee, addition cannot be made. Further, it is apparent that for A.Y. 2013-14 till A.Y. 2018-19, no incriminating evidence is found during the course of search. On that basis also, there cannot be any addition in the hands of the assessee for those years where the addition is made, considering agricultural income as undisclosed income. Decided in favour of assessee.
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