TaxTMI 
TaxTMI 
2025 (9) TMI 1627
X X X X Extracts X X X X
X X X X Extracts X X X X
....ax (Appeal), Addl/JCIT(A)-3, Mumbai [hereinafter in short "Ld.CIT(A)"], for the A.Y.2016-17. 2. In this appeal, the assessee has raised the following grounds of appeal:- "1. The order of the learned Commissioner of Income Tax (Appeals) is contrary to the facts and also the law applicable to the facts of the case. 2. The learned Commissioner of Income Tax (Appeals) is not justified in sustaining the addition of Rs. 10,26,289 made by the assessing officer u/s 69A of the Act by treating the agricultural income as unexplained money. 3. Any other ground that may be urged at the time of appeal hearing." 3. The solitary issue that arises for our consideration, in the present case, pertains to the addition of Rs. 10....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... receipts, purchase bills, vouchers, cash flow statements etc. In response, the assessee submitted that no books of accounts were maintained by him, and no bills or vouchers were maintained for the expenditure incurred. During the assessment proceedings, it was noticed that the assessee has claimed net agricultural income from nursery at Rs. 22,26,289/- as exempt, which appears abnormal when compared to the normal agriculturist, whose produce from agriculture is seasonal and mainly dependent on weather conditions. During assessment proceedings, the statement of the assessee was also recorded, in which he submitted that the extent of the nursery is 20 acres and also explained the variety of plants grown in his nursery. In his statement, the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ared net agricultural income of Rs. 22,26,289/-. As the assessee could not produce bills and vouchers for the expenditure incurred, the Ld. AO by estimating the agricultural income from nursery at Rs. 60,000/- per acre, computed the agricultural income at Rs. 12,00,000/- for 20 acres of land in which the assessee had the nursery and added the balance amount to the total income of the assessee. Before the lower authorities, the assessee made the following submissions explaining its business operations: "a. The operations of nurseries cannot be compared to normal agricultural operational crops like paddy, coconut or wheat. b. The nurseries in East Godavari, Andhra Pradesh more particularly, the Kadiyam and Kadiyapulanka are ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... assessee before the Ld. AO vide submissions dated 25.10.2018. Further, we find that the Ld. AO in Para No. 5 of the assessment order also took note of the fact that an income certificate was furnished by the assessee. However, from the record, it is evident that the Ld.AO did not record any adverse findings against the documents submitted by the assessee. 9. From the perusal of the record, it is also evident that the rate of agricultural income estimated by the Ld. AO has no basis, and, in contrast, the assessee has placed on record an agricultural income certificate in support of its contention that it earned Rs. 1,00,000/- per acre of agricultural income. Therefore, we find substance in the submissions of the assessee, and accordingly....