TaxTMI 
TaxTMI 
2004 (8) TMI 628
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.... of the Tax Authorities are identical and as such can be decided on the basis of ITA No. 201/Agr/1999 in which the highest addition has been made. In ITA No. 201/Agr/1999 i.e., Veerendra Singh Bundela the relevant facts are that the Assessing Officer with regard to claim of Rs. 3,40,000 as agricultural income was of the view that the assessee could have earned only Rs. 1,69,200. However, with respect to the remaining amount of Rs. 1,70,800 he treated the same to be income from other sources and made an addition of this amount. 4. Aggrieved by this, the assessee went in appeal before the CIT(A) who observed in para 1.3 appreciated the facts as under:- Name of the appellant Area of agricultural land Agricultural income shown (Rs.) Agricultural income as assessee by the A.O. (Rs.) Amount taxed as income from other sources (Rs.) Malkhan Singh Bundela 17.34 acres 2,80,000 1,73,400 1,06,600 Puran Singh Bundela 16.43 acres 3,10,000 1,64,300 1,45,700 Name of the appellant Area of agricultural land Agricultural income shown (Rs.) Agricultural income as assessee by the A....
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....ricultural income. It is the case of the appellant that Tehsildar was an expert in the matter relating to agriculture and his opinion was based on the quality of land, irrigation facilities etc. In this background it is claimed that the quantum of agricultural income shown by the appellants could not be held as unreasonable. In all these appeals, a query letter as addressed by my learned predecessor to the Assessing Officer to make necessary enquiries about the nature of crops grown during the year i.e., Rabi, Kharif etc. and gross yield of crops which had been sold, details of expenses incurred on various items like fertilizers, seeds, pesticides, manual labour charges, electricity charges for running the tubewell, tractor charges, and expenses on freight for carrying produce to Mandi. In response to this query, a report has been sent by the Assessing Officer on 10-3-1998 including therewith a report of Lekhpal sundry details of income and expenditure (without any details) on agriculture activities alongwith copies of Khasra and Khatoni. Together with this, a report of Inspector of Income-tax has also been forwarded. On going through the report (a copy of which was also supplie....
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....circumstances of these cases in appeal, it cannot be denied that these appellants were enjoying agricultural incomes as they were having large holdings. At the same time it could not be accepted with any degree of certainty that they were enjoying agricultural incomes during the year to the extent claimed by them in their returns. It may also not be called purely coincidental that huge agricultural incomes were available during the year when considerable investments in purchase of properties etc. were undertaken by them as mentioned in the assessment orders. Without prejudice to the claims of the assessees regarding huge agricultural incomes vis-á-vis huge investments, it could not be denied that it was incumbent upon them to produce the details of necessary expenditure incurred on various items required for conducting agricultural operations, the yield received and sale proceeds realized. The attitude of the appellants in all these cases for not providing required details is not understood. So much so, even the details of agricultural income shown by them in the preceding years have not been furnished during the appellate proceedings which would have been quite helpful in t....
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....was that the estimate is not correct and thus there is no reason why the estimate of the assessee should not be accepted. It was further contended by him that at the relevant point of time the assessee owned three tractors and engaged labourers. Simply because the details were not maintained by the assessee it was argued the assessee's claim could not be rejected based on an arbitrary estimate of the Assessing Officer. 10. Inviting attention to page 1 of the Paper Book which is a certificate of the Tehsildar dated 12-9-1996, it was submitted that the person competent to estimate the gross agricultural income has certified that the assessee could have earned Rs. 4,75,000 from agricultural activity. Similarly reliance was also placed on page 2 of the Paper Book which is the certificate of the Tehsildar regarding the net agricultural income wherein the Tehsildar has certified that the assessee has earned net agricultural income of Rs. 3,65,000. It was his submission that the claim of the assessee is only Rs. 3,40,000. Referring to page 3 of the Paper Book, it was further submitted that it is the certificate of the Gram Pradhan, Lalitpur certifying that the lands of the assessees we....
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.... 19-1-1998 by the assessee wherein the following submissions were made:- "Before the Commissioner of Income-tax (Appeals)-II Sanjay Place, Agra. Sir, Ref. Appeals of: (i )Sujan Singh Bundela (ii)Malkhan Singh Bundela (iii)Pooran Singh Bundela (iv)Ishwar Singh Bundela (v)Virendra Singh Bundela The only point involved in their appeals is against the estimate of agricultural income made by the Assessing Officer. In this connection the appellants have already filed submissions dated 9-2-1998 and 17-12-1998. The assessees have also brought on record the certificates of Tehsildar regarding the estimate of agricultural income. 2. The written arguments dated 9-2-1998 with enclosures were sent by your predecessor to the Assessing Officer for his comments. The Assessing Officer vide his letter dated 10-3-1998 has forwarded the report of the Inspector of Income-tax and also report of the Lekhpal. 3. The Inspector had visited all the places where the agricultural lands are situated and has reported that : (a )Agricultural crops were growing on all the fields. (b)Irrigation facilities were available on each site. (c )Tractor was also found. (d)On ....
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....he case it was wrongly relied upon. The concurrent finding on record in the present case is that the assessee has been engaged in agricultural activities. The issue which devolves for consideration now in the scenario is that where the assessee has not maintained the relevant details of expenditure incurred to earn agricultural income claimed could a flat rate be applied to estimate the possible agricultural income or would it have been more appropriate to base the estimate on the specific irrigation facility available on their different chuncks of land keeping in view the nature of the soil etc. It is seen that the factum of assessee being engaged in agricultural activities has been accepted by the Revenue Authorities. However, no basis for estimating on a flat rate basis possible income of the assessee has been given either in the assessment order or in the impugned order. It is also seen that, on the other hand, in the remand proceeding the Inspector personally visited the agricultural fields of the assessee alongwith Shri Ram Sewak and Shri Ghuman Singh, Lekhpals of the respective areas and has given details of land holdings, the nature of irrigation facilities, etc. and crop f....