Agricultural income claim accepted where ownership, revenue records, and past assessments supported exemption; bogus addition deleted.

An addition for alleged bogus agricultural income was deleted where the assessee produced material showing ownership of agricultural land, a local revenue certificate describing the land as agricultural and noting the crops grown, and evidence that similar agricultural income from the same land had been accepted in earlier assessments, including under section 143(3) of the Income-tax Act, 1961. On these facts, the claim of exempt agricultural income was held to be supported by the record and the addition was found unsustainable.

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Issues: Whether the addition made on account of alleged bogus agricultural income was sustainable.

Analysis: The assessee had claimed agricultural income as exempt and had placed material to show ownership of agricultural land. The record also showed that similar agricultural income from the same land had been accepted in earlier assessments, including assessments framed under section 143(3) of the Income-tax Act, 1961. A certificate from the local revenue authority describing the land as agricultural and indicating the crops grown was also produced. On these facts, the addition was found to be unsupported.

Conclusion: The addition on account of bogus agricultural income was deleted and the issue was decided in favour of the assessee.

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