TMI Blog2023 (8) TMI 1280X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee is carrying out the agricultural activities and sale of plant to the particular party and this ledger shows the transaction to the extent of Rs. 67,080/- and the difference of Rs. 18,625/- was due to booking of assessee s bills lately which is reflected from the documents produced before the Assessing Officer as well as before the CIT(A). Thus, ground no.1 is allowed. Activity of agricultural in nature in respect of engaging in nursery activities of growing various types of lawns, flower plants and vegetable plants and they cannot be considered as commercial activity for treating the same as business income. The assessee has produced relevant copies of the sales bills as well as the transaction details from Bank Account as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in disregarding the contention raised by the appellant during the appellate proceedings and erred in confirming the estimation of Rs. 8,90,040/- as business income. 4. The Learned CIT (Appeals) erred in holding that the agricultural expenses cannot be less than 15 20% of the gross receipts and further erred in confirming that agricultural income was Rs. 73,73,780/- against the agricultural income disclosed by the appellant at Rs. 85,42,750/-. 3. The assessee filed return of income for the Assessment Year (A.Y.) 2013-14 showing total income at Rs. 1,97,520/- alongwith agricultural income at Rs. 75,42,750/-. The case of the assessee was selected under scrutiny. Various notices under Sections 143(2) and 142(1) were issued from ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest income from Bank FDR and Saving Bank Account totalling to Rs. 1,97,520/- (after deduction of Rs. 10,000/- claimed under Section 80TTA). Agricultural income earned to the extent of Rs. 75,42,750/- was claimed as exempt income while filing the return of income. Due to the oversight, the agricultural income was shown at Rs. 75,42,750/- while filing return of income instead of Rs. 85,42,750/- which was brought to the notice of the Assessing Officer during the course of assessment proceedings. The Ld. AR further submitted gross agricultural income being Rs. 90,50,270/- out of which expenses of Rs. 5,07,520/- were claimed and hence agricultural income being Rs. 85,42,750/-. 5.1 As regards to ground no.1 in respect of addition on accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts as per books of accounts of the assessee and when information under Section 133(6) of the Act was called for, the party s ledger shows transactions of Rs. 67,080/- and, therefore, difference of Rs. 18,625/- was due to booking of assessee s bills lately and hence the said difference cannot be considered as income from other sources. 5.3 As regards to ground nos.2 3 relating to addition on account of treating agricultural income as business income amounting to Rs. 8,90,040/-, the Ld. AR submitted that the Assessing Officer has considered Rs. 26,97,090/- as other sales and made addition @ 33% thereon i.e. Rs. 8,90,040/- as business income, but the assessee is engaged in nursery activities and does not carry any other business activitie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f whether said income was arising from agricultural activities or from the non-agricultural activities and the estimation of 33% of Rs. 26,97,040/- was justified. As regards ground no.4, the Ld. DR relied upon the Assessment Order and the order of the CIT(A). 7. We have heard both the parties and perused all the relevant material available on record. As regards to ground no.1, the assessee in respect of addition of Rs. 2,60,305/- has given all the copies of ledger of the said party as well as sales bills and the said transaction was duly reflected in books of account as well as Balance Sheet and, therefore, after taking cognisance of the evidences including the supporting documents and invoice, the transaction appears to be genuine and, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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