Appeal granted as assessee's agricultural income exempt due to income from known sources. Addition by AO deleted. The ITAT allowed the appeal, ruling that as the assessee had income from known sources apart from agriculture, the agricultural income was exempt. Since ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Appeal granted as assessee's agricultural income exempt due to income from known sources. Addition by AO deleted.
The ITAT allowed the appeal, ruling that as the assessee had income from known sources apart from agriculture, the agricultural income was exempt. Since no evidence was presented to show other sources of income, the addition made by the Assessing Officer was deleted.
Issues involved: Appeal against addition of agricultural income u/s Asst. Year 2004-2005.
Facts: The assessee filed a return declaring income from interest and agricultural sources. The Assessing Officer noted discrepancies in the sale of agricultural produce and added an amount as income from non-agricultural source. The CIT(Appeals) confirmed the addition.
Arguments: The Department argued that since details of agricultural produce were not filed and there were differences in the bills, the addition was justified.
Decision: The ITAT referred to previous cases where it was held that if a person has only agricultural income and no other income, no addition can be made unless proven otherwise. In this case, the assessee had income from known sources apart from agriculture, making the agricultural income exempt. As no evidence was presented to show other sources of income, the addition was deleted, and the appeal was allowed.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
