TMI Blog2017 (7) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... report of Punjab Agriculture University that safed musli is not recommended for cultivating in region of Ludhiana, rejected claim of the assessee would not have much relevance as against the evidences brought on record, particularly when Assessing Officer and Ld. CIT(Appeals) himself have accepted the claim of the assessee of earning agriculture income on account of cultivation of safed musli. Authorities below were unjustified in taking the agriculture income as 'income from other sources'. - Decided in favour of assessee. - ITA No. 794/CHD/2016 - - - Dated:- 6-2-2017 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER For The Appellant : Shri Ashwani Kumar For The Respondent : Shri S.K.Mittal, DR ORDER This appeal by assessee has been directed against the order of ld. CIT(Appeals)-3 Ludhiana dated 04.03.2016 for assessment year 2007-08, challenging the addition of ₹ 14,75,000/- made by Assessing Officer by treating the agriculture income as 'income from other sources'. 2. I have heard ld. Representatives of both the parties and perused the material on record. 3. The ld. counsel for the assessee did not press ground No. 3, same is dismissed as not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee's changed version is clearly an afterthought and is only an unsuccessful attempt to wriggle out of the situation arising out of its false statement to the effect that he has cultivated 'Musli seeds' in village Gorsain Kadarbaksh. iii) Even otherwise no details have been furnished with regard to the area under cultivation, the expenses for the agricultural operation such as tilling, sowing harvesting to make the produce marketable. iv) No evidence in the form of Bill vouchers has been furnished with regards to the expenses of the seeds. v) An affidavit was also filed at the later stage of the assessment proceedings and the same is inconsequential because it has been filed suo-moto and assessee was never asked for the same and contains nothing more than a self serving statement. More so an affidavit is not evidence per se in view of the well accepted legal position. vi) An information was called for from the PAU, Ludhiana, a pioneer institution in the field of agriculture, to know whether cultivation of 'Musli seeds' is economically viable in Punjab. The head of the Department, Department of Agronomy has verified that cultivation of Musli seeds is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t appeal may be decided on merits. 8. The ld. CIT(Appeals) in view of the remand report of the Assessing Officer further directed the Assessing Officer that since he has admitted additional evidences and you (A.O.) have accepted the assessee's claim that musli seeds were cultivated on 3.5 acres of land owned by him, in these circumstances, assessee's claim that he has earned agriculture income from 3.5 acres of land owned by him is prima-facie correct. However, the report of the Assessing Officer is silent regarding quantum of agriculture income earned by the assessee from this land . 9. The Assessing Officer in view of the above directions of the ld. CIT(Appeals) further submitted his remand report which is also reproduced in the impugned order in which the Assessing Officer reported that Assessee furnished the details of sales of agriculture produce vide various bills. The assessee also filed account of agriculture income. The bills submitted were regarding sale of safed musli. The purchase and sale bills have been produced but the person to whom sale was made, have not been produced . The Assessing Officer as per his search on internet and website noted that expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (b) Subsequently the assessee stated that he was owner of agricultural land at village Jainpur and cultivated ' Safed Musli' on 2.75 acres of land at village Jainpur. As per the report of Patwari 'Sfed Musli' was cultivated on this land, however this land is covered with Chardiwari , as reported in the revenue records. (c) As regards purchase of seeds, the assessee has claimed that two quintals of seeds were purchased in cash for ₹ 80,000/- on 28.05.2004. (d) The expenses were incurred on agricultural activities, as per bills brought on record, as under ; i) PVC Pipes : ₹ 43,260/- on 29.03.2005 ii) Fertilizer ₹ 7,000/- on 20.08.2006 ₹ 36,856/- on 25.07.2006 iii) HDPE Pipes ₹ 720/- pm 01.05.2004 iv) Cartons ₹ 9000/- on 31.03.2005 v) Centrifugal Agri sub-pump ₹ 8000/- on 01.05.2004 Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sold by the assessee as claimed by him. The plea of the assessee that he earned agricultural income is rejected and addition of ₹ 14,75,000/- made by the Assessing Officer is confirmed . 11. After considering rival submissions, I am of the view addition is wholly unjustified. The assessee claimed to have cultivated musli seeds in the agricultural land field. The assessee, as regards the details noted in the khasra girdawari explained that Musli Seeds were cultivated in assessee's land at village Jainpur and Gursain Kadarbaksh. The assessee filed affidavit of Shri Amrik Singh who was summoned by the Assessing Officer in the remand proceedings and in his statement recorded under section 131, he has confirmed to have cultivated the land of assessee for Safed Musli. The assessee also filed evidence from the Punjab National Bank who have reported to the Assessing Officer that they have sanctioned loan to the assessee for cultivating Safed Musli. The Assessing Officer, therefore, in principle accepted the claim of the assessee of cultivating Safed Musli in the agricultural land. The ld. CIT(Appeals), however, directed the Assessing Officer to report the quantum of agricult ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
