TMI Blog2002 (7) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... omra More, Bihar. The total investment in these drafts amounted to Rs. 2,29,625. The aforesaid bank drafts were seized by the Department. Subsequently the assessee filed its return of income at Rs. nil but showing agricultural income of Rs. 45,000. Before the AO the appellant stated that he had no business except the agricultural income. During course of assessment proceedings, the assessee explained to the AO that he had utilized following funds in purchase of those bank drafts: Rs. (a) Loan from brother, Shri Wasim Khan 1,00,000 (b) Loan from another brother, Shri Muzaffar Ali Khan 60,000 (c) Own Investment 75,000 Total 2,35,000 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant has agricultural income out of the above land. It is further argued that during the year in question Government has announced to purchase coal from open market which was controlled through "Cotas" system. In view of this changed policy of the Government, the assessee has purchased DD of Rs. 2,29,625 for the purpose to install business in coal but unfortunately the above DDs have been seized by the IT authorities. Therefore, the assessee could not be able to do any business. It is further argued by the learned counsel that the AO made addition on account of undisclosed business of coal of Rs. 50,000 which has been deleted by the CIT(A) on the ground that no addition can be made which purely based on the guessed undisclosed business. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d before the AO to prove that the assessee was holding agricultural land. 8. We noted that the assessee was holding agricultural land. His brothers were also having agricultural land and the only source of income of the assessee and his brothers was agricultural income. The Department could not prove any business carried out by the assessee or his brothers during the year under consideration or in the earlier years. No other source of income except agricultural source could be proved by the AO. The Hon'ble Supreme Court in the case of CIT vs. Smt. P.K. Noorjahan (1999) 155 CTR (SC) 509 : (1999) 237 ITR 570 (SC) has held that the bill which was introduced in Parliament, while inserting s. 69 in the IT Act, 1961, the word "shall" had been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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