2016 (4) TMI 1012

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....at income derived of Rs. 2,50,450/- is Agricultural Income and instead treating the same as Income from Other Sources. 2. Looking to the facts and circumstances of the case and in law the learned Comm. Of Income Tax (Appeals) erred in Confirming the A.O's action of disallowing interest on delayed payment of TDS Rs. 3,268/- as not allowable under section 37(1) of the I.T. Act,1961 though the same is clearly allowable as business expenditure under the very said provisions of section 37(1) of the I.T. Act 1961and 3. Looking to the facts and circumstances of the case and in law the learned Comm. Of Income Tax (Appeals) erred in Confirming the A.O's action of disallowing an adhoc amount of Rs. 1,00,000/- out of Labour Charges on the ground....

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....llowing seasonal farmer cum watchman to cultivate lands in share which is very nominal. Ld. AR further submitted that since afore mentioned amount has been earned from agricultural activities therefore the same ought to have been treated as agricultural income. On the other hand, ld. DR relied upon the orders passed by the revenue authorities. 6. We have heard the counsels for both the parties and we have also perused the material placed on record as well as the orders passed by the revenue authorities. We noticed that this ground has been dealt with by ld. CIT(A) in para 3.4 which is reproduced as under: "I have considered facts of the case, oral contentions of the appellant as against the observations/findings of the AO in the assessm....

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....nish any details in respect of expenses incurred, agricultural produce taken, labour employed etc., and in this respect no evidence was furnished by the assessee before the assessing officer. Not only, this the assessee has also not been able to produce any document in order to show that there was any agricultural produce taken from such agricultural land and therefore the assessee could not establish that there was any generation of income there from. The only explanation put forth by the assesee is that the income was generated by harvesting yield like natural grass or allowing seasonal farmer cum workmen to cultivate lands in shares. The said explanation itself is not sufficient enough, therefore the ld. CIT(A) after considering the plea....

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....ved and it was held that interest for late payment of direct taxes is not deductible. Therefore, following the principles of consistency and respectfully following the judgement rendered by the Co-ordinate Bench we dismiss this ground of appeal. Ground No.3 9. Ld. AR submitted that the assessee is engaged in the business of Civil Contractor and therefore had incurred expenses of Rs. 53,34,958/- on wages to labourers, miscellaneous expenses etc., and the said amount was rightly debited in the P&L A/c. It was submitted that on the basis of estimation the AO disallowed a sum of Rs. 1,00,000/- out of total expenses whereas in fact the assessee had spent actual amount of Rs. 53,34,958/- on disbursement of wages etc. On the other hand, ld. DR ....