TaxTMI 
TaxTMI 
2022 (2) TMI 698
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....unilaterally deciding the issue of disallowance of agriculture income by relying on some NHB reports, without giving an opportunity to the appellant to put his say on the matter, similarly as has been done by Ld. AO. c. Not considering the fact that cost of banana cultivation for A Y 2011-12 is 57.22% and AY 2012-13 is 38.79% averaging to 42.46% as against the alleged average ratio of 47.20% considered by CIT(A). 2) The Hon. CIT(A) erred in disallowing expenses of Rs. 94,500/- under Sec. 14A r.w. Rule 8D of Income Tax Rules, 1962. 3) The Hon. CIT(A) erred in disallowing the depreciation of Rs. 2,76,166/- on ad hoc basis for the reason that no business is carried out during the 4) The Hon. CIT(A) erred in ....
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....,16,49,630/-. The assessment was completed on 24-3-2015 determining total income at Rs. 11,02,77,792/-. 3. That regarding first ground of appeal, it is with regard to the disallowance of excess claim of agricultural income and at para 4.2 to 4.5 the A.O has given his reasons and more specifically he has relied on a data published by National Horticultural Board (NHB). As per the data provided by NHB the expenses incurred for crop of banana in the year 2nd and 3rd after plantation should be approximately 47.2% of gross receipts. However, the assessee has shown the expenses at 27.2% of gross receipts only. From the above it is clear that the assessee has suppressed the expenses to inflate the exempt agricultural income. Therefore, the supp....
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....assessee. It was the contention of the Revenue that the reports relied upon by the A.O were available on the internet and were accessible to general public including the assessee and there has been no violation of natural justice. Hon'ble Orissa High Court held that the assessee was entitled to prior notice of any report or material which the A.O intended to rely upon and by merely claiming that the said reports were available on internet cannot satisfy the mandate of rules of natural justice. Therefore, in the instant case, natural justice has been clearly violated and the A.O's order was clearly indicative of possible bias and therefore, the impugned order passed by the A.O was set aside and the Revenue was directed to serve copie....
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.... confirmed the addition made by the A.O and even before us, the assessee was unable to bring out on record any evidence or material to support his case on this issue. We are therefore, of the considered view and after going through the entire details that no business activity was carried out by the assessee and when he could not establish the business connection for the use of the luxury vehicles in relation to his business in such a scenario the stand of the revenue is correct. This ground is therefore, dismissed. 5. In ground No. 4, the assessee has challenged the disallowance of legal expenses of Rs. 15,08,770/-. The A.O has discussed the same in the assessment order as under: "Perusal of profit and loss account, it was obser....