2025 (10) TMI 954

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....he only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the disallowance of agricultural income in the facts and circumstances of the case. 3. We note that the assessee filed his return of income for the AY 2016-17 on 17.10.2016 admitting total income of Rs..7,65,160/- and agricultural income of Rs..85,84,619/-. The return of income was processed under section 143(1) of the Income Tax Act, 1961["Act" in short]. The case was subsequently selected for "Limited scrutiny" under CASS and notice under section 143(2) of the Act dated 05.07.2017 was issued. The reason for scrutiny selection is to verify the "Whether sales turnover/receipts has been correctly offered for tax, Whether the claim of agric....

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....only observation made that no maintenance carried out for growth of the trees. She argued vehemently that it is evident that the land on which the eucalyptus trees are grown are dry agricultural lands and drew our attention to the provisions of section 2(1A) of the Act and submits that the agricultural income means any rent or revenue derived from the land which is situated in India and is used for carrying out agricultural activities and prayed that the agricultural income claimed by the assessee should be allowed. 5. The ld. DR Ms. Gauthami Manivasagam, JCIT submits that the onus to prove that income qualifies as "agricultural income" under Section 2(1A) lies squarely on the assessee, as it is a claim for exemption from tax. The assess....

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....ice. By relying upon the decisions of the Hon'ble Supreme Court in the case of CIT v. Raja benoy Kumar Sahas Roy [1957] 32 ITR 466 (SC), CIT v. Raja Ramkrishna Deo [1960] 38 ITR 671 (SC) and in the case of CIT v. Green Gold Tree Farms Pvt. Ltd. [2008] 303 ITR 113 (P&H), the ld. DR prayed to sustain the order confirmed by the ld. CIT(A). 6. We have heard both the parties and perused the material available on record. We note that the assessee has claimed agricultural income of Rs..85,84,619/- as exempt. In support of his claim, the assessee furnished patta and chitta of the land. In order to verify the claim of the assessee, the Assessing Officer deputed the Inspector of the ward, who did the field visit and submitted the field report stat....

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....e receiver of rent-in-kind, of any land with respect to which, or the produce of which, any process mentioned in paragraphs (ii) and (iii) of sub-clause (b) is carried on" 8. From the above definition, it is evident that, agricultural income includes revenue from agricultural land and building, and income from agricultural activities and can be broadly classify the same into three categories,(i) rent or revenue earned from agricultural land situated in India, (ii) income from agricultural land arising from primary agricultural activities and the sale of agricultural produce and (iii) income from building required for agricultural operations. Therefore, we find definition of agricultural income is also includes any rent or revenue derived....