2024 (8) TMI 1701

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e, probabilities, facts and circumstances of the case. 2. The learned CIT[A] is not justified in sustaining the addition of Rs. 9,29,559/- out of agricultural income based on the remand report of the learned A.O. without appreciating that no addition could be made with reference to the said extent of agricultural receipts merely because the same were not supported by sale pattis considering that the receipts were from sale of minor crops at farm gate under the facts and in the circumstances of the appellant's case. 3. The learned CIT[A] is further not justified in holding that agricultural income to the extent of Rs. 13,58,740/- has to be disallowed on account of estimation of agricultural expenses at 25% of the agricu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ome on 04.01.2019 declaring total income of Rs. 11,86,040/- and Net agriculture income of Rs. 81,45,189/-. It is noted by the Ld.AO that the return was filed under section 139(4). The Ld.AO completed assessment under section 143(3) read with sections 143(3A) & 143(3B) of the Act on 17.02.2021, wherein Rs. 81,45,189/- claimed as agriculture income in the return was added as unexplained income from undisclosed sources. The gross total income computed by the Ld.AO is as under: Gross Total Income as per ITR filed Rs. 13,02,589 Addition of agriculture income as mentioned above Rs. 81,45,489 Assessed income Gross Total Income Rs. 94,47,780 2.2 It is submitted that assessee is aged about 84 years and is suffering from health i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tted that the agricultural income was declared on cash basis. It was submitted by the assessee that this system was consistently followed by the assessee since past several years. 3.1 Before the Ld. CIT(A), assessee filed details of the crops sold to Malnad Arecanut Co-operative Society and to The CAMPCO Ltd. situated at Government APMC Yard, Sagar Road, Shivamogga. Upon receipt of all these evidences the Ld. CIT(A) called for, remand report from the assessing officer. Before him the assessee filed bills and ledger account from CAMPCO Ltd. and Malnad Arecanut Co-operative Society. 3.2 The Ld.AO during remand proceedings verified all the details furnished by the assessee and the assessing officer accepted the details to the extent o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ns advanced by both sides in the light of records placed before us. 7. We note that Ground no. 2 raised by the assessee is in respect of addition that was sustained by the Ld. CIT(A) in respect of agricultural receipts that were not supported by any details / vouchers received from sale of minor crops. 7.1 It is noted that in any event, sale of coconut or any other agricultural products on day to day basis by an agriculturist locally, one cannot expect to maintain bills, vouchers, receipts etc. At this juncture, we refer to the provisions of section 44AA of the Act that fortifies further that an agriculturist is not required to maintain books of accounts. We further note that the revenue has anyway not brought anything on record to es....