TaxTMI 
TaxTMI 
2022 (5) TMI 1264
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....1) making addition of agricultural income of Rs. 37,11,028/- as unexplained income. 2. Brief facts of the case is that the assessee is an individual and derives income from salary and income from other sources and agricultural income. The assessee has filed his returned income on 18.2.2015 admitting total income of Rs. 1,98,900/-. The case was selected for scrutiny assessment and notices under section 143(2) and 142(1) were issued from time to time. As there were no reply from the assessee a show cause notice dated 12.8.2016 was served on the assessee on 19.8.2016, which reads as under: "Date : 12.08.2016 To, Jigar Ashok Hebra B-2/33, Amrapali Apartments Sukhipura Bus Stand Paldi ....
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....speed post." 3. As there was no reply from the assessee, the AO made addition of Rs. 37,11,028/- as unexplained income of the assessee and determined total income of Rs. 39,09,928/- and also initiated penalty proceedings under section 271(1)(c) of the Act. 4. Aggrieved against the assessee the assessee filed appeal before the ld. CIT(A), wherein the assessee filed written submissions along with application for additional evidence under Rule 46A of the Income Tax Rules, 1962 providing land ownership deals with supporting documents and also agriculture produce as well as certain bills. The ld. CIT(A) called for remand report from the AO. The concluding portion of the remand report of the AO is as follows: "6. Thus, from the abo....
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....very clear that the claim of agriculture income is not genuine. Therefore, the income shown as agriculture income is required to be treated as income from undisclosed sources." 5. The assessee also filed his rejoinder to the remand report by taking following contentions: "08. The Assessing Officer asked the persons who have purchased the agricultural products from the assesses about the 7 x 12 abstracts, income and expenditure account in respect of agricultural activities under taken, bills for purchases of electricity, water, seeds, fertilizers, pesticides, labour etc. and who has done the farming activities and what was paid to them. 09 It is a surprising that how the Assessing Officer can ask such question to the per....
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....ents on the finding of the AO in the remand report. The appellant filed rejoinder and also submitted unsigned confirmation letter from the buyer which cannot be admitted at this stage of appellate proceeding as already twice opportunities have been given in the assessment proceeding and remand proceeding. It is also noted that the so called confirmation from the buyer is not signed by any one thus having no evidentiary value. 4.8. The AO also reported in the remand report that the appellant claimed the expenses for earning the agricultural income of Rs. 4,68,140/- for payment of labour, seeds and another expenses. However, no evidence and bills for incurring these expenditures were filed and thus the genuineness of this expenditure....
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....irmed the addition made by the AO which is required to be deleted. Further, the Ld. AR brought to our attention that the assessment year 2015-16, the assessee admitted 10% disallowance in agriculture income, the same was accepted and disallowed by the AO vide order dated 22.12.2017 passed under section 143(3) of the Act. 10. Per contra, the Ld. DR appearing for the Revenue supported the orders of the lower authorities and further held that no proof for payment of labour, seeds and other expenses giving rise to the agriculture income, were produced by the assessee before the appellate authorities also. Therefore, the entire disallowance is to be upheld and thereby dismiss the appeal of the assessee. 11. We have given our thoughtful con....
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....d. It is not possible to have agriculture produce without incurring such expenses. So the claim of the assessee is misleading in the absence of any details of procurement of seeds, fertilisers, water facilities, labour charges, and therefore, no agriculture activities can be said to be done. Further, in the form No. 7/12, there is no details of farming being done by the assessee and the nature of the crops, and the quantification of the land, has not been mentioned. Hence, the claim of entire agriculture income is required to be treated as income from undisclosed income. 12. In the rejoinder to the remand report, the assessee raised a pertinent question viz. the details of expenditure and quantification of goods cannot be questioned that....