2017 (7) TMI 770

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....ources. He had filed his return of income declaring income of Rs. 14,60,662/- and agricultural income of Rs. 17,49,480/-. In the course of assessment proceedings, the Assessing Officer observed that the assessee had not produced any evidence as to sale proceeds of huge quantity of agricultural produce consisting of Amla, Papaya, etc.. He estimated the agricultural income at Rs. 12,00,000/- and treated the balance income of Rs. 3,99,480/- as income from undisclosed sources. 2.1 He further noticed that assessee had claimed expenses of Rs. 4,59,720/- on account of expenses incurred to earn the agricultural income. He required the assessee to furnish necessary proof of these expenses. However, the assessee could not produce these evidences, the....

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....ing the facts of cases & on wrong basis. 2. Because CIT(A) has erred in confirming the addition of Rs. 55,408/= on account of interest on loan ignoring the facts the case & submissions of the appellant and on wrong premises. 3. Because CIT(A) has erred in Confirming the addition of Rs. 4,33,721 on account of business expenses on wrong observation & conclusions drawn. 4. The appellant craves to add, delete, amend, modify records, any ground or grounds of appeal." 5. Apropos ground no.1, ld. counsel for the assessee referred to pages 25 to 27 of Paper Book, wherein, the affidavit of assessee is contained giving the details of earning of net agricultural income at Rs. 15,99,480/- as under :- "2. That during FY 2008-09, I derived Ne....

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....erely on the basis of averments made in affidavit, without being substantiated, the assessee's claim was rightly rejected partly by Assessing Officer. 7. I have considered the submissions of both the parties and perused the record of the case. Admittedly, before the Assessing Officer, the assessee, inter-alia, admitted that no records were maintained in regard to sale of crops. The Assessing Officer had given due weightage to assessee's plea regarding increase in land holdings. The submissions of ld. counsel that assessee's plea on the basis of affidavit should have been accepted in toto, is devoid of any merit because unless the averments made in the affidavit are duly supported by evidence, the same cannot be taken as sacrosanct. The ass....

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....he submissions of both the parties and perused the record of the case. As far as the claim u/s 36(1)(iii) is concerned, the same can be allowed only if assessee could substantiate the setting off of his business. The onus was on assessee to establish that first step had been taken towards setting up of his business. Ld. CIT(A) concluded that there was no setting up of business because assessee failed to substantiate the purchases of Rs. 1,25,000/-. However, the assessee had also claimed rent of Rs. 69,000/- out of which Rs. 57,000/- had been paid through cheque and had also claimed Rs. 1,58,785/- towards repairs and maintenance out of which Rs. 1,51,105/- was paid through cheque as is evident from pages 52 to 53 of Paper Book. Further, the ....