2008 (5) TMI 280

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....s of law:- "Whether in the facts and circumstances of the case and in law the order of the Income-tax Appellate Tribunal is perverse, being based on conjectures and surmises and the findings of the Assessing Officer as well as the Commissioner of Income-tax (Appeals) have been ignored without any cogent material?" 2. The assessee declared agricultural income at Rs.7,50,000/- from cultivation of 36 acres of own agricultural land and 6 acres of leased agricultural land. In support of the said declaration, the assessee produced revenue record, J-forms and claimed that the agricultural income was net of expenses @ 25%. However, the submissions of the assessee were not accepted by the Assessing Officer, who determined the agricultural inco....

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....realization the expenses to the extent of 25%. This manner of declaring agricultural income itself shows that it has been declared on estimate basis. Now the issue is as to whether the estimate made by the assessee can be construed as reasonable considering the claim of agricultural operations carried out, size of land holdings, past history etc. In this context, we find that the assessee has attempted to explain that it had 36 acres of land under cultivation, partly owned by him and partly belonging to his brother in addition to 6 acres of land taken on lease. The Assessing Officer did not accept the plea of the assessee with respect to the leased land for the reason that it was not substantiated. In so far as the non-acceptance of the qua....

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....mates in the place of estimation done by the assessee. There is no such exercise on the part of the Assessing Officer emerging in the instant case. Having regard to the aforesaid discussion, in my view the Assessing Officer was not justified in rejecting the claim of the assessee for having derived agricultural income of Rs.7,50,000/- for the year under consideration. Moreover, in the immediately preceding year, the assessee has declared agricultural income of Rs.7,00,000/-. No doubt, the income for assessment year 2002-03 has not been subjected to scrutiny assessment yet the trend of income declared cannot be lost sight of while considering the efficacy of income declared by the assessee. Moreover, there is no material on record to show....