9911796707
TMI Blog2018 (11) TMI 1486X X X X Extracts X X X X X X X X Extracts X X X X ..... itpur Ghoshi constituted an adventure in the nature 2. confirming the assessment of agricultural income of Rs. 44,135/- as income from other sources as proposed by the Assessing Officer. 3. Confirming the addition of Rs. 1,79,650/- an alleged low household withdrawals." 3. Brief facts of the case are that assessee is an individual engaged in the business of grain trading and commission agent. Assessee filed his return of income on 30/9/2010 declaring income of Rs. 909445/-. Assessment under section 143 (3) of the act was passed on 26/3/2013 determining total income of the assessee at Rs. 2224470/-. In the assessment proceedings the AO treated the income from business of trading in land of Rs. 1 091240 which were shown by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase and sale. Therefore, according to him, the assessee is a trader in land. He further noted that that land purchased by the assessee was sold during the year and that too after making plots. One plot of Land purchased during this year has been sold in the year itself . The AO further noted that the land details for four years clearly shows that the assessee does not hold land as investment. He further noted that assessee is a commission agent and trader in grains and therefore he is neither an agriculturist and does not intend to do agricultural activities on agricultural land purchased and therefore assessee is engaged in systematic purchase and sale of land. He further noted that the land is not held for a long time. One of the pie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as stated it as a business income, there is no difference in taxation of same. Therefore, the whole controversy is on the sale of first plot of land, which was purchased in 2007 and sold in 2010 after holding for three years. The learned assessing officer has held that there was no intention of the assessee to hold as an investor but as a trader but there was no material put by the learned AO to substantiate his finding the learned CIT appeal upheld the addition on the issue of substantial investment and intention of the assessee. Both these criteria as are not relevant for deciding unless substantiated by the evidence. Even otherwise, the substantial investment cannot distinguish a particular purchase of land between a trader and investor. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 35 as income from other sources instead of agricultural income. Assessee claimed that On the land purchased by the assessee as agricultural land assessee carried out agricultural activities and out of such activities, he earned agricultural income. For the proof of agricultural income the assessee submitted mandi Samiti receipts for sale of produce. However, assessee could not produce before the learned assessing officer bills for purchase of seeds and fertilizers or any other evidence. Therefore, his claim was rejected. The learned CIT appeal has also confirmed the finding of the AO. The learned authorised representative submitted that in earlier years similar income from agricultural activities has been accepted in the case of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espect to the addition of Rs. 1 79650/- on account of alleged low household withdrawals. The assessing officer noted that assessee's family is consisting of four persons and assessee has shown the total household expenditure of Rs. 1.76 lakhs. Out of which the school fees paid for the children is Rs. 8 9613 and therefore the expenditure per month left for the household expenditure is only Rs. 2417/- per person per month which is too low . The learned AO asked the assessee to substantiate his household expenditure.. After considering the explanation of the assessee, the learned AO noted that assessee is a person with the net worth of Rs. 1.64 crores and he estimated the average annual household expenditure at Rs. 2.66 lakhs by giving weighta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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