TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the amount of Rs. 40,18,699 claimed as agricultural income was exempt under Section 10(1) of the Income-tax Act, 1961, or was liable to be treated as business income.
Analysis: The audited financial statement for the relevant year showed a separate column for agricultural income and a separate column for non-agricultural income, and the assessee had disclosed the non-agricultural income for taxation while claiming the balance as exempt agricultural income. The financial statement and related records were available before the lower authorities, and the revenue authorities did not dislodge the bifurcation or produce material to show that the exempt income claim was false. On the material on record, the claimed agricultural income was reflected in the accounts and the addition was not justified merely on the basis of the earlier adverse view taken by the Assessing Officer and the CIT(A).
Conclusion: The claimed agricultural income was able as exempt income under Section 10(1), and the addition of Rs. 40,18,699 was not sustainable.
Final Conclusion: The assessee's claim for exemption of the disputed income succeeded, and the assessment addition treating it as business income was deleted.
Ratio Decidendi: Where audited accounts credibly bifurcate agricultural and non-agricultural income and the revenue does not rebut that disclosure with contrary material, the exempt agricultural income claim cannot be denied on conjecture.
TaxTMI 
