2023 (1) TMI 1005

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....r the PCIT justified in invoking the provisions of section 263 of the Act by holding the assessment order dated 07-12-2018 is erroneous and prejudicial to the interest of Revenue. order dated 07-12-2018 is erroneous and prejudicial to the interest of Revenue. 3. Heard both the parties and perused the material available on record. We note that the PCIT was of the opinion that the assessee explained in assessment proceedings that he had derived agriculture income from sale of strawberry, various vegetables, mushroom and food grains, but however, the 7/12 extracts shows cultivation of crops like rice, nachani, vatana, grass and potato. Further, no costs were debited to the profit and loss account on sale of agricultural products. He issued ....

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....s are relating to subsequent year and does not relate to the year under consideration. 5. Coming to the agricultural income, it is noted that the AO in assessee's own case for earlier years, on due enquiries accepted the agricultural income declared by the assessee. It appears from the impugned order that the said earlier assessment pertaining to A.Ys. 2013- 14, 2014-15, 2015-16, 2016-17 and 2017-18 were filed before the PCIT contending that the assessee was also awarded IWG/2021-Winner IWGA- 2020 Award for agriculture activities. Therefore, it is clear from the record the case of the assessee were selected for limited scrutiny finding huge agricultural income in the year under consideration and also in the earlier assessment years. On p....

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....utiny proceedings. We note that the assessee furnished costs which were debited to the profit and loss account before the PCIT which is reproduced at page 4 of the impugned order. On perusal of the said submission of assessee regarding costs in respect of sale of agricultural produce, it was stated that the agricultural goods were mainly transported by its own Mahindra Scorpio vehicle and sometimes goods were transported by ST parcel service. It is also contended that the respective Shopping Mall personnel used to pick up the agricultural goods from the assessee. It is also enclosed ledger extract from the books of account in the year under consideration, wherein, it is noted ledger extract received from assessee's customers were placed on ....