TaxTMI 
TaxTMI 
2026 (6) TMI 328
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....the appeal of the Assessee against the Assessment Order, dated 22/12/2018, passed under Section 143(3) of the Income Tax Act, 1961 [hereinafter referred to as 'the Act']. 3. The relevant facts in brief are that the Assessee is a resident individual. For the Assessment Year 2016-2017, the Assessee filed return of income on 17/10/2016 declaring total income of INR. 57,03,090/- after claiming exemption of INR13,95,333/- in respect of agricultural income. The aforesaid income tax return was selected for regular scrutiny. Assessing Officer completed assessment under Section 143(3) of the Act vide Assessment Order, dated 22/12/2018 at assessed income of INR. 15,47,58,070/- after making, inter alia, the following additions/disallowance: (a) disallowance of exemption in respect of agricultural income amounting to INR. 13,95,333/- (b) addition of INR. 13,18,56,290/- under Section 69 of the Act in respect of investment made in purchase of properties as per AIR information 4. Being aggrieved, the Assessee preferred appeal before Learned CIT(A) which was disposed off as partly allowed vide Order dated 29/05/2025, impugned by way of the present cross-appeals. Learned CIT....
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....de details/documents in support of his claim for exemption of agricultural income. Accordingly, the Assessing Officer disallowed exemption of INR. 13,95,333/- claimed in respect of agricultural income. 9. Being aggrieved, the Assessee carried issued before the Learned CIT(A) in appeal. The Learned CIT(A) dismissed the ground raised by the Assessee and confirmed the order passed by the Assessing Officer disallowed exemption for agricultural income holding as under: "Regarding the ground relating to treating agricultural income as income from other source, it is observed that the AO has made the addition for non-submission of details as called for from the appellant and no agricultural land is shown under the Balance sheet. Perusal of the submission of the appellant I find no merit in the contention of the appellant in as much as it is stated, without providing the details of agricultural income, AO ignored past and succeeding year's record and the said land is not shown reflected in the balance sheet for which the same is reproduced as under : xx xx In view of above, in the given facts and circumstances of the case and also looking to the fact that no p....
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.... the relevant previous year after taking into consideration all the documents/details furnished/to be furnished by the Assessee. It is clarified that the Assessee would be granted a reasonable opportunity of being heard. Since we have restored the issue back to the file of Assessing Officer all the rights and contentions are left open. Accordingly, Ground Nos.1 & 2 raised by the Assessee are allowed for statistical purpose. 11. In result, in terms of paragraph 10 above, the appeal preferred by the Assessee is allowed for statistical purpose. ITA No.5273/Mum/2025 [Revenue's Appeal] 12. Now we will take up grounds of appeal raised by the Revenue which reads as under: i. On the facts 'and circumstances of the case, the ld.CIT(A) grossly erred accepting the contentions of the assessee that the properties were purchased on behalf of the partnership firm M/s. Mahadev Builders and Developers by completely ignoring the fact that these properties were purchased in the name of the assessee and reflected in his name as is evident from the from the Balance Sheet of the assessee as reproduced in the appellate order itself on Page No.24, in which the said properties are ref....
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....mmovable properties purchased for aggregate consideration of INR. 1,60,99,290/- which were appearing in ITS. The Assessee had also failed to explain the source of funds utilized for purchase of the said properties and therefore, the Assessing Officer treated the investment made in immovable properties as unexplained investments under Section 69 of the Act and made an addition of INR. 13,18,56,290/- in the hands of the Assessee. 15. Being aggrieved, the Assessee carried the issue before the Learned CIT(A), Learned CIT(A) granted relief to the Assessee and deleted the addition of Rs. 13,18,56,290/- made by the Assessing Officer under Section 69 of the Act holding as under: "Regarding the ground relating to addition towards investment in purchase of property Rs. 13,18,56,290/- it is observed that the AO, despite having the written submission including property details, without recording any adverse finding against the appellant's said submission, not detecting any defects in books of accounts, has simply drawn inference of Rs. 13,18,56,290/- as unexplained investment merely stating non furnishing the details of source of investment. It is observed while framing the assessm....
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..... Having considered the rival submissions and on perusal of record, we find some merit in the contention advanced on behalf of the Revenue. We note that the documents/details on which reliance was placed by Learned CIT(A) while granting relief to the Assessee were furnished for the first time by the Assessee before the Learned CIT(A). The same were field as filed as following annexures to Submission, dated 21/05/2023, filed by the Assessee before Learned CIT(A): (a) Annexure F - Copy of the ITR and Audit report of M/s.Manoj Enterprises. [Page No.114 to 148 of the Paper Book] (b) Annexure G - Copy of purchase agreement of Bk. No.1968, Room No.12 to 15 along with ledger and bank statements. [Page No.149 to 264 of the Paper Book] (c) Annexure H - Copy of the Assessment Order passed under Section 147 read with Section 143(3) of the Act in the case of M/s. Mahadev Builders and Developers for Assessment Year 2016-2017[Page No.265 to 267 of the Paper Book] (d) Annexure I - Copy of purchase agreement of Plot No.35, 4A along with ledger and bank statements. [Page No.268 to 359 of the Paper Book] (e) Annexure J - Copy of Plot No.35-4A Konark Bank ....
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....o-Op Society in the books of the Assessee (Page 365) 2. Bank statements (Page 366-368) 3. Ledger account of Loan from LIC Housing Finance in the books of the Assessee (Page 369) 4. Copy of the LIC Housing Finance Loan statement (Pages 370- 373) 6. Copy of the purchase agreement (Pages 374-507) 4. Swami Shanti Prakash (Flat No.13) 20,00,000/- Manoj Jagwani Out of own fund 1. Ledger account of Swami Shanti Prakash in the books of the Assessee (Page 508) 2. Bank statements (Page 509-510) 3. Copy of the purchase agreement (Pages 511-517) 5. Section 3A & 3B, Sho No.541 1,60,57,000 Manoj Jagwani The consideration was paid by partnership firm Manoj Enterprises 1. Ledger account of Section 3A & 3B, Shop 541 in the books of the Assessee (Page 518) 2. Bank statements (Page 519-520) 3. Copy of the purchase agreement (Pages 521-568) 22. During the course of hearing Scrutiny Report, dated 16/07/2025, was relied upon by the Learned Departmental Representative. On perusal of the same, we find that the Learned CIT(A) had called for a remand report in respect of additional evidence furnished by the Assessee. However, the Assessing Offic....
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....the head Income from other sources, in an arbitrary manner and on the basis of surmises and conjectures by overlooking the supporting evidence submitted by the appellant. 2. The Ld. CIT(A) has grossly erred in mechanically confirming the arbitrary disallowance of exemption claimed under Section 10(1) of the Income Tax Act, 1961 (the Act) amounting to Rs. 7,66,03,137/-, without appreciating the genuine nature of the agricultural activities duly supported by documentary and evidentiary records placed on record by the appellant. 3. The Ld. CIT(A) has grossly erred in confirming the disallowances of exemption of Rs. 7,66,03,137/- and by ignoring the fact that the Ld. A.O has relied on the statements of few persons and documents which was taken and recorded behind the back of the appellant and without providing any opportunity of cross examination. 4. The Ld. CIT(A) grossly erred in upholding the assessment order passed by the Ld. A.O which is bad in law, as passed on the basis of suspicion and guess work 27. As was the case for the Assessment Year 2016-2017, the Assessee had claimed exemption of INR. 7,66,03,137/- in the return of income for the Assessment....
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....with pincode 410201 from the talathi office of the concerned village, it is found that the land is a barren land and it is not used for cultivation or any agricultural activity. 2. An enquiry was also conducted to verify the credentials provided by the assessee of the cultivators/persons situated in Karjat area. It is observed that the said persons have not cultivated the land during the FY 2019-20. 3. The assessee has not submitted any explanation with respect to sharp rise of Rs. 3.6 cr. in agricultural income for same land holding between AY 2018-19 to AY 2020-21. 4. It is not humanely plausible that for the same land holding the income earned has undergone such a substantial jump the credentials provided by the assessee of the cultivators/persons situated in Karjat area. It is observed that the said persons have not cultivated the land during the FY 2019-20. 5. The land documents provided by the assessee, it is found that the documents are related to financial year 2015-16 and 2018-2019 and not relevant to year under consideration. The assessee have not filed the relevant documents despite repeated requests by the Assessing officer further su....
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....al of the record we find that the Assessee had claimed exemption under Section 10(1) of the Act in respect of agricultural income of INR. 7,66,03,137/-. During the course of assessment proceedings the Assessee submitted the detailed explanation regarding the agricultural activities carried on agricultural land, ownership of agricultural land, 7/12 extracts, cultivation and details of persons who carried out cultivation activities along with their full name, Aadhar/PAN and complete addresses. The Assessee also submitted copies of sale bills of agricultural produce. The Assessing Officer issued notices under Section 133(6) for verification and carried out inquiry to arrive at conclusion that no agricultural activities were out by the Assessee for the Assessment Year 2020-2021. It is the contention of the Assessee that the Assessee was not confronted with the material gathered by the Assessing Officer during the assessment proceedings. Perusal of the Assessment Order shows that the Assessing Officer had issued various show-cause notices to the Assessee during the assessment proceedings to confront the Assessee with the material gathered during the inquiry. At the same time we note tha....