TMI Blog2015 (7) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... pheld. Concluded matters cannot be re-agitated in the proceedings u/s.153A unless there is evidence to the contrary. Since there is no incriminating material during the search, the treatment of the said income as income from other sources in AY.2006-07 is set aside - Decided in favour of assessee With reference to other assessment years, assessee's contentions that the lands were being cultivated by cultivators and assessee gets only net income requires examination. Neither the Assessing Officer enquired into this aspect nor CIT(A) even though contended before her, did not order the Assessing Officer to make enquiries. Books of Accounts as seen from the assessment order, are stated to be with the department only. Therefore, in the intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,373 2008-09 30-11-2009 (-) 33,742 5,58,018 3. Consequent to search and seizure operations u/s.132 of the Income Tax Act (Act) conducted on 17-09-2008 on assessee, notices u/s.153A of the Act were issued calling for returns of income and in response, assessee filed returns of income. Up to AY.2007-08 returns of incomes were filed again as was originally declared where as for the later two years, returns were filed in response to notice u/s.153A. As seen from assessment orders, Assessing Officer considered the agricultural income as non-agricultural income on the reason that there is no expenditure booked for agricultural activity and there are only regular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on since 1997 though the registration did not take place and the registration took place in 2012 by the Officer appointed by the Principal Junior Civil Judge, Siddipet. Though the appellant claimed that it received net agricultural income from the cultivator, it could not file any documentary evidence such as lease agreement or any confirmation from the alleged cultivator or proof of cultivation of the land and agricultural produce or sale of the agricultural produce. It is not sufficient to establish the possession of agricultural lands to claim agricultural income but it is essential to establish that agricultural activity was carried out in those lands and the agricultural produce has been sold and there from agricultural income was deri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... His order is very cursory and does not indicate that Assessing Officer asked assessee to explain the sources or to furnish the evidence in support of the agricultural income. Prima facie action of AO in treating the declared agricultural income as 'income from other sources' cannot be justified, as assessee was not given any proper opportunity. Be that as it may, even the accepted income in AY.2006-07 was also treated as 'income from other sources' without even referring the order u/s.143(3) passed by the predecessor Assessing Officer. this fact was brought to the notice of the CIT(A) and CIT(A) acknowledged the same vide para 7 of the order. Surprisingly, there is no finding on the above. 9. There is no dispute with refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be given due opportunity to explain the agricultural income earned. Assessing Officer is free to make necessary enquiries if required. With theses directions, the orders of authorities in six assessment years i.e., AY.2003-04, 2004-05, 2005-06, 2007-08, 2008-09 and 2009-10 are set aside to the file of Assessing Officer to redo it as per facts and law on the issue. 11. Ld.DR in the course of arguments relied on the judgments in the following cases for the proposition that AO is free to make enquiries and make additions u/s 153A: i. CIT Vs. Anil Kumar Bhatia [352 ITR 493 (Del)] ii. Gopal Lal Bhadruka Ors Vs. Dy.CIT of AP High Court [346 ITR 106] There is no dispute with reference to the jurisdiction of Assessing Officer in exami ..... X X X X Extracts X X X X X X X X Extracts X X X X
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