TaxTMI 
TaxTMI 
2023 (1) TMI 268
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....gricultural properties of the assessee's parents and brother, detailed accounts are not maintained. That cannot be a reason to disbelieve the income estimated by the assessee in the absence of any adverse findings by the Assessing Officer. 3. The assessee has estimated the income from rubber based on the yield for different geographical locations as per Rubber Board data and the yield is not the highest yield but the average yield for each area. The prices of rubber are collected by the Rubber Board and the statistics published. 4. The yield of coconut has been estimated, again on the average yield rate and not the highest yield rate. The prices of coconut has been taken on the average rate for the year. 5. Both rubber and coconut are long term crops and tilling, cost of seeds etc., are not required every year. The maintenance expenditure on fertilizer, irrigation in summer etc., labour charges for tapping of rubber, plucking of coconut etc.. are estimated at 20% of the yield. Besides this, the coconut husk, coconut leaves etc., are also sold and yield on income which has not 6. The Assessing Officer has not pointed out any discrepancy or inflati....
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....ion of the Hon. Gujarat High Court in -- Income Tax Officer Vs. Ashwin.D.Metha (HUF) (2014)(12) TMI 1391. The Hon Gujarat High Court at para 6 held as follows:- " The Commissioner of income Tax (Appeals) has held that since the agricultural income has been accepted by the revenue and the Assessing Officer has not been able to prove any other source of income out of which the assesse could have earned this income, and the income declared by the assesse has to be accepted ". 2. The assessee is the proprietrix of a retail medical stores operating in a hospital. The assessee has maintained proper books of accounts for the said business and has got the books of account audited under section 44AB of the Income Tax Act. The assessee also has agricultural income from 26.62 acres of yielding rubber trees at Desamangalam and from 15.25 acres of yielding coconut garden at Muthalamada, Palakkad. The assessee lives in a joint family and the assessee's father, mother and brother also has similar agricultural holdings. The agricultural holdings of all the members are contiguous and assessee's father Dr.M.Ramakrishnan manages these properties. With respect to the agricultural ....
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....hat the actual yield is slightly higher than the estimated average yield by Rubber Board because the rubber trees were replanted by assessee in 2001 and since the trees are fairly young, the yield is higher. The assessee further submitted that the average sale rate of rubber in Kerala is also substantiated by Report of International Rubber Study Group, 2015. Thus, the assessee contented that the above estimates are in consonance with the income from rubber as per the Rubber Board statistics and the yield from coconut is also based on the basis of the prevailing market prices and yield in Kerala. The assessee had also provided for expenses/ cost of cultivation at 25% of the gross receipts. In the case of rubber and coconut, the cost of cultivation is mainly for fertilizer, irrigation, maintenance and harvesting, as they are long term crops. 8. The AO, proposed to disallow a portion of the agricultural income returned as the assessee had only estimated the income and not based on books of accounts. The AO directed for an inspection to conduct the agricultural activities wherein the actual extent of crops cultivated, nature of rubber trees etc., were obtained by the inspector attac....
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....he current year. The Ld AR also submitted that the AO has not pointed out any discrepancy or inflation in the yield estimated or the market price at which the income was estimated and without pointing out any adverse factor, the AO cannot simply reject the estimate. In this regard the ld AR relied on following decisions: • NITTA JATIYA (ACIAS & NITAJATIA) Vs. DCIT, Central Charge Range 7(1) Mumbai, 2021 (3) TMI 264 • Shri Rajeshbhai Gijubhai patel, Shri Pankajbhai Gijubhai Patel Vs. CIT Surat 2022(1) TMI 52 12. The ld AR further submitted that in the absence of any evidence to the contrary, the agricultural income estimated and offered by the assesse has to be accepted. The Assessee relies on the decision of the Hon. Gujarat High Court in: • Income Tax Officer Vs. Ashwin.D.Metha (HUF) (2014)(12) TMI 1391- GUJARAT HIGH COURT • JK. CHOKSHI Versus ACIT - 2015 (1) TMI 392 - GUJARAT HIGH COURT 13. The ld DR relied on the orders of the lower authorities. 14. We heard the rival submissions and perused the material on record. The contention of the revenue based on which the estimated agricultural income is disputed by the revenue....