TaxTMI 
TaxTMI 
2023 (4) TMI 1161
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....ssment u/s 153A r.w.s. 143(3) on 30.12.2010 determining the total income of the assessee a Rs.2,09,52,528/- wherein apart from other additions he made addition of Rs.34,14,900/- towards house rent and treated the agricultural income of Rs.9,28,856/- as income from other sources. 3. In appeal, the learned CIT (A) confirmed the additions made by the Assessing Officer. 4. Aggrieved with such order of the CIT (A) the assessee is in appeal before the Tribunal by raising the following grounds: "1. The order of the learned CIT (A) is erroneous to the extent is prejudicial to the appellant. 2. The learned CIT (A) erred in confirming the addition made by the Assessing Officer towards agricultural income of Rs.9,28,856/-. 3. The learned CIT (A) erred in confirming the addition towards cash received from rental income of Rs.10,24,470/-. 4. Any other ground/grounds that may be urged at the time of hearing". 5. Ground of appeal 1 and 4 being general in nature are dismissed. 6. In ground of appeal No.2, the assessee has challenged the order of the learned CIT (A) in confirming the addition made by the Assessing Officer towards agricultural income o....
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....ee. Holding of 38.86 acres of agricultural land by the assessee is not in dispute since the learned CIT (A) has given a finding on this issue. However, the allegation of the Revenue is that the assessee failed to produce any evidence regarding the expenditure towards carrying out of such agricultural activities by him, the yield of flowers and vegetables and the sale of such products in the market. At the same time, holding of 38.86 acres of agricultural land is not in dispute. Therefore, in our opinion, some agricultural income should be made available to the assessee. On being a pointed query by the Bench at the time of hearing, the learned Counsel for the assessee submitted that the land is situated at Kurnool and rainfed. Therefore, considering the totality of the facts of the case and in the interest of justice, the benefit of Rs.25,000/- for the A.Y 2003-04, Rs.30,000/- for the A.Y 2004-05 and Rs.35,000/- for the A.Y 2005-06, as agricultural income, in our opinion, will meet the ends of justice. We hold and direct accordingly. The order of the learned CIT (A) for the above 3 years are accordingly modified and the Assessing Officer is directed to give the benefit of agricultur....
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....sources and the balance was treated as a rent only. For the impugned A.Y, he treated an amount of Rs.34,14,900/- as income from other sources. 10. In appeal, the learned CIT (A) after obtaining a remand report from the Assessing Officer and rejoinder of the assessee to such remand report upheld the action of the Assessing Officer by observing as under:- "With regard to addition of Rs.34,14,900/ - as 'income from other sources' being rent received in cash, during the course of assessment proceedings, the AO noticed that the interest earned by the appellant which was not accounted for in the books was introduced in the books under the head rental income in the names of some persons and as the appellant was not able to prove the existences of such persons, the AO had treated the portion of cash received in the form of rent as income from other source. During the course of appeal proceedings, the appellant furnished the relevant books of accounts and ledger statements. After examining the same, the Assessing Officer, in the remand report, stated that the same were accounted for in the books of accounts and no adverse conclusion was given. The Asses....
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....s upheld considering the claim of the appellant as Rent and the same is therefore taxed as 'Income from other sources. The appellant has already offered Rental Income under the head Income from House property, as per the remand report. In view of the same, the addition should be limited to the disallowance u/s 24(b) only subject to verification of the above facts and the ground no.3 is dismissed." 11. Aggrieved with such order of the CIT (A), the assessee is in appeal before the Tribunal. 12. The learned Counsel for the assessee submitted that the assessee has given the money to certain persons and the persons have registered the property in the name of the assessee as mortgage. Therefore, the assessee was the owner of the properties, although the persons/loanees were staying in their respective houses. Therefore, whatever interest they were giving on account of loan taken from the assessee is towards rent for staying in the house and therefore, such income has to be treated as rental income. He accordingly submitted that the benefit of deduction u/s 24 should be made available to the assessee. 13. The learned DR, on the other hand, strongly supported the order of the ....