https://www.taxtmi.com/caselaws?id=431168 An assessment order that accepts a claim of agricultural income without any specific enquiry on a material issue can be treated as erroneous and prejudicial to the interests of the Revenue under Explanation 2 to section 263 of the Income-tax Act, 1961. Here, the scrutiny assessment did not call for a questionnaire or other information on the nature of receipts from banana saplings, and the claim was accepted mechanically. The Tribunal held that this lack of enquiry justified revision, and it was reinforced by later assessment years in which similar receipts were treated as business income. The revisionary order was upheld and the assessee's challenge failed. en-us Thu, 20 Oct 2022 00:00:00 +0530 Wed, 07 Dec 2022 10:27:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=431168 An assessment order that accepts a claim of agricultural income without any specific enquiry on a material issue can be treated as erroneous and prejudicial to the interests of the Revenue under Explanation 2 to section 263 of the Income-tax Act, 1961. Here, the scrutiny assessment did not call for a questionnaire or other information on the nature of receipts from banana saplings, and the claim was accepted mechanically. The Tribunal held that this lack of enquiry justified revision, and it was reinforced by later assessment years in which similar receipts were treated as business income. The revisionary order was upheld and the assessee's challenge failed. Case-Laws Income Tax Thu, 20 Oct 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=431168