TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 567
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....024 & 14.06.2024 for the assessment year 2016-2017 & 2018-2019. 2. At the outset, on perusal of the appeal record, it is found that appeal of the assessee for A.Y.2018-2019 is filed belatedly by 12 days and appeal of the assessee for A.Y.2016-2017 is filed belatedly by 73 days. In both the appeals, the assessee has filed condonation applications along with affidavit stating sufficient reasons for delay in filing both the appeals. Ld. Sr. DR did not object to condone the delay. Accordingly, we condone the respective delay in filing both the appeals and appeals are heard finally. 3. First, we shall take up the appeal of the assessee in ITA No.461/CTK/2024 for A.Y.2016-2017, wherein the assessee has raised the following grounds :- 1. That ....
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....ee is a private limited company, engaged in the business of cultivation of agriculture produce and fishery products. The case of the assessee was selected for limited scrutiny to verify the agriculture income claimed as exempt and the assessment was completed vide order dated 29.12.2018, wherein the addition of Rs. 1,45,00,000/- was made u/s.68 of the Act by holding that the agricultural income declared by the assessee is unexplained cash credit. The assessee has claimed net agriculture income of Rs. 96,28,307/- out of gross receipt of Rs. 1,45,40,415/- as exempt, however, since the AO was of the opinion that no agriculture activity was carried out, he held the agriculture income as unexplained and made the addition on the gross agriculture....
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....agricultural products. He further submitted that during the course of assessment proceedings the Ward Inspector visited the land of the assessee to verify as to whether the agricultural activities were actually carried out or not. He further submitted that no order authorizing the inspector to make such verification is made as is evident from the perusal of order sheet which is placed in paper book. Ld. AR stated that as per the Inspector's report, he observed that there were no trees etc. were available as claimed by the assessee for having agricultural income at the time of his visit which was carried out in October, 2018. As per the ld. AR the Inspector visited the land in October, 2018 when the assessee has almost shut down the agricult....
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....ese pen drives are placed on record. The ld. AR also drew our attention to the report of Inspector where he observed that some standing crop of paddy is there at the land of the assessee in isolation patches which further established that agricultural activities were carried out on the said laid while the Inspector has visited. Ld. AR further drew our attention to the sanctioned letter issued by the Bank of India, Jaydev Vihar Branch, Bhubaneswar where the bank has allowed the credit facility to the assessee on the said land and the funds were allowed to the production used for fisheries, agricultural etc. From the perusal of the balance sheet also it appears that during the year under appeal, there were outstanding balance of the bank loan....
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....ral activities. The report so submitted by the Inspector is reproduced as under :- 8. From the perusal of the report of the Inspector, it is seen that he admitted that in isolated patches standing crop of paddy is available. Moreover, from the perusal of the report, we find that the Inspector has failed to make proper and adequate enquiry nor had recorded statements of any person. Further the Inspector had made enquiries from the local villagers and had not confronted the employees of the assessee who were not only taken care of the land but also actively engaged in the agricultural activities and were available when he visited the land. It appears that the Inspector chose not to make any enquiry from them to ascertain true nature of the a....