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ITAT held 50% of income as agricultural income and balance as unexplained income
ITAT held 50% of income as agricultural income and balance as unexplained income
Assessee, an advocate, showed agricultural income of Rs.60,30,000. JCIT rejected the claim and AO treated it as unexplained income. CIT(A) held income to be genuine as AO had not disputed agricultural land holding of 5.83 acres, and sale bills of agricultural produce were given. ITAT held 50% of income as agricultural income and balance as unexplained income, because in subsequent year, agricultural income Rs 25 lakhs had been accepted.-501187
1. The assessee was an Advocate by profession, showing income from profession and income from other sources. He had shown huge agricultural income of Rs.60,30,000/- from land holding of approximately 6 acres. The assessee had moved a petition under section 144A (of Income Tax Act, 1961) before the Joint Commissioner of Income-tax for issuing of necessary guidelines and instruction to the AO. The Ld. JCIT after detailed discussion and analysis, found that the assessee's claim of agricultural income was not genuine at all. Accordingly, the entire agricultural income was treated by him to be false and non-genuine. The AO thus following the directions of the JCIT treated the agricultural income of Rs.60,30,000/- as unexplained income.
2. CIT(A) held that AO had not disputed the land holding of 5.83 acres of agricultural land and also the copies of sale bills of agricultural produce, and treated the entire agricultural income as genuine.
3. On appeal, the ITAT held as under:
"However, in this case, it cannot be denied that assessee did not carry out any agricultural activity or has not earned any income. Looking to the fact that in the subsequent years, agricultural income has been accepted to the extent of 25 lakh rupees, therefore, consistent with the view taken, some reasonable estimate of agricultural is being made. Accordingly, to be fair to the assessee, we hold that, out of Rs.60,30,000/-, 50% of the income declared can be treated as agricultural income and balance 50% has to be treated as unexplained income. Such an estimate is made purely on the principles of judicial precedence, because in the subsequent year, agricultural income to the extent of Rs.25 lakhs has been accepted. Thus, grounds raised by the revenue are partly allowed.”
Case Reference - Asst. Commissioner of Income Vs Shri Keshav G Menon.
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH "A", MUMBAI
BEFORE SHRI RAJENDRA, ACCOUNTANT MEMBER AND
SHRI AMIT SHUKLA, JUDICIAL MEMBER
ITA No. : 6288/Mum/2011
(Assessment year: 2008-09)
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