2023 (10) TMI 1314

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....47 of the Income Tax Act, 1961 (in short "Act") dated 30.12.2016 for the Assessment Year (A.Y.)2010-11. 2. Brief facts of the case are that the assessee, director of the company, M/s Gajuwaka Constructions Pvt. Ltd. engaged in construction of flats, filed her return of income for the A.Y.2010-11 on 11.10.2010, admitting a total income of Rs. 2,56,700/-. A survey u/s 133A was conducted in the case of the above company on 26.08.2015 by the ADIT(Inv), Unit-III(3) and the survey report was forwarded to the Assessing Officer(AO). Based on the survey report, the AO issued a notice u/s 148 of the Act dated 22.01.2016. In response to the notice, the assessee filed her return of income on 30.05.2016, admitting income of Rs. 2,56,700/- and agricul....

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....is having only Ac.16.77 cts. The AO stated that the assessee did not produce any evidence in support of agricultural produce or the agricultural income and the accumulated savings. Hence, the AO estimated the agricultural income at Rs. 10,000/- per acre for the land holdings of Ac.16.77 cts at Rs. 1,67,000/-. The AO set off the agricultural income so estimated against the impugned investment of Rs. 5,00,000/- towards development of pedagantyada site (Radha Madhav Towers) and brought the difference amount of Rs. 3,33,000/- to tax, treating it as unexplained expenditure u/s 68 of the Act. 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the CIT(A) and the Ld.CIT(A) dismissed the appeal of the assessee. 4. Agg....

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....ds at Visakhapatnam and Vizianagaram to an extent of Ac.27.50 cents which were purchased by her parents long back and subsequently inherited by her. Cashew nut plantations and other agricultural produce are available on these agricultural lands and she produced the Certificate from the concerned MRO, certifying that there was an income of Rs. 60,000/- per acre from cashew nut plantations. The assessee produced the details of land holdings along with pattadar passbooks, documents and MRO certificate for the agricultural income and the cash flow statement and stated that the assessee has source as elaborated above for advancing Rs. 5,00,000/- to Smt.S.Sarada while entering into a development agreement. The Ld.AR, therefore pleaded to set asid....

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....ted that the assessee is having Ac.27.50 cts of land and produced certificate issued by the Village Revenue Officer, endorsed by Tahsildar and Mandal Revenue Inspector. The Ld.AR submitted that the assessee had admitted agricultural income of Rs. 3,10,000/- in her return of income and the AO is not justified in estimating the agricultural income at Rs. 1,67,000/-. He pleaded to set aside the order passed by the Ld.CIT(A) and allow the appeal of the assessee on this ground. 10. Per contra, the Ld.DR submitted that the Ld.CIT(A) is justified in upholding the addition made by the AO, estimating the agricultural income @Rs.10,000/- per acre for 16.77 acres as against 27.50 acres claimed to have been held by the assessee. 11. I have heard ....