2025 (8) TMI 965

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....ng out from the orders of authorities below are that the assessee is an individual carrying out agricultural activities. For the year under consideration, the assessee has filed his return of income declaring income of Rs. 4,80,100/-. The return of income filed by the assessee was selected for scrutiny and thereafter, an assessment u/s. 143(3) of the Act has been framed. During the course of assessment proceedings, the Assessing Officer observed that the assessee has claimed agricultural receipts on the sale of raisins to the tune of Rs. 58,94,436/-. The Assessing Officer was of the view that the conversion of grapes into raisins is not an agricultural activity. Accordingly, the Assessing Officer sought an explanation of the assessee as to ....

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....tivation of grapes and deriving agriculture income therefrom. It is next submitted that sometimes certain quantity of grapes remains with the assessee, which the assessee converts into raisins by drying the grapes in natural sun light and no machinery or technique is deployed by the assessee for the conversion of the grapes into rasins. 7. On the contrary, ld D.R. appearing on behalf of the revenue relied upon the authorities below as well as relied upon the judgment of ITAT Pune Benches in the case of M/s. Bafna Agro Farm in IT(SS) anO.29/Pun/2018 order dated 10.2.2023. 8. We have considered the rival submissions and perused the materials available on record. We observe that the assessee is an agriculturist and deriving income by sel....

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....e temperature ranging from 35oC to 41oC and also requiring land and buildings, machineries, furniture, electrical power, man power etc. The Assessing Officer also further noted that the raisins product is subject to VAT observed that the grapes converted into raisins produces altogether commercial a new distinct product liable to tax under the provisions of VAT @ 1%. Based on these findings, the Assessing Officer applied Rule 7(1) of the Rules, computed the non-agricultural income. The methodology of the computation of non-agricultural income is not under challenge before us. Even on appeal before the ld. CIT(A), the findings of the Assessing Officer were confirmed." 9. Perusal of the above factual findings would show that the facts in t....