9911796707
TMI Blog2015 (9) TMI 1350X X X X Extracts X X X X X X X X Extracts X X X X ..... riefly the facts are, assessee is an individual. For the AY under consideration assessee filed his return of income on 22/03/2010 declaring total income of Rs. 1,74,570. In course of assessment proceeding, AO while examining computation of income filed by assessee along with return of income noticed that assessee has shown net agricultural income of Rs. 62,35,000. He, therefore, called upon assessee to furnish the details of agricultural activities carried out. As noted by AO, in response to the query made by him, assessee produced details of sale of agricultural products, agricultural land holding etc. On examining the details, AO found that the entire sale proceeds from sale of agricultural produce has been received in cash. A major porti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee for the year under consideration at Rs. 64,09,570. Being aggrieved of the assessment order so passed, assessee preferred appeal before ld. CIT(A). 4. In course of hearing of appeal before ld. CIT(A), assessee supported his claim of agricultural income by producing various documentary evidence. Ld. CIT(A) on verifying the documentary evidences including the report of Income-tax Inspector, who conducted an enquiry, though, accepted that assessee was carrying on agricultural operations, however, she was of the view, that alone would not prove the fact that assessee has received the quantum of agricultural income shown by him. Ld. CIT(A) observed, though, assessee has entered into lease agreements with 17 persons, but, total lease rent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which forms part of the record before the departmental authorities, submitted, neither AO nor ld. CIT(A) has disputed the fact that assessee is having agricultural land holding of abut 48 acres in East Godvari District of AP, which is considered to be very fertile land. He submitted, even the Inspector of Income-tax, who conducted enquiry reported that various persons have stated before him that assessee has taken on lease agricultural land belonging to them and was carrying on agricultural activity. Therefore, when assessee is having substantial agricultural land holding and is carrying on agricultural activity, there is no reason to disbelieve agricultural income shown by assessee. It was submitted, in support of his claim, assessee has n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s claimed to have been sold to a company, but, no payment was directly received from the company towards sale of the agricultural produce, but, assessee claimed to have received the sale proceeds from the debtors of the said company in cash. Ld. DR submitted, when assessee failed to furnish adequate evidence to prove such fact by furnishing the detailed addresses of the concerned debtors from whom he claimed to have received the amount, his statements cannot be accepted. He further submitted, lease rental paid by assessee to the land owners is very meager considering the amount of agricultural income claimed to have been earned by assessee, which further proves the falsity of claim of agricultural income. He, therefore, submitted, assessee' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iture incurred by assessee is also in cash. It has further been observed by the departmental authorities that the lease rental paid by assessee to the land owners is very very less compared to the agricultural income claimed to have been earned by assessee. Further, it has been observed by departmental authorities that, though, assessee claimed to have received sale proceeds from the debtors of ASCPL, but, he failed to produce the detailed addresses of the debtors. In our view, though, the aforesaid facts may raise some doubt and suspicion with regard to the quantum of agricultural income earned by assessee, but, they cannot conclusively prove that assessee has not at all earned any agricultural income. When it is a fact on record that asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the agricultural land holding is a matter of debate or further enquiry, but, the fact that assessee is having agricultural income cannot be disputed or doubted considering the evidences brought on record by assessee. However, considering the fact that the entire receipts from agricultural operations is in cash and the expenditure incurred is also in cash and as alleged by the department they are not supported by proper vouchers, we are of the view that the matter requires examination by AO as far as quantum of agricultural income earned by assessee. Moreover, certificate dated 29/08/2011 obtained from Tahsildar, Kadiam only indicates the produce grown by assessee without mentioning the yield per acre or income which one can reasonably ..... X X X X Extracts X X X X X X X X Extracts X X X X
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