TaxTMI 
TaxTMI 
2026 (7) TMI 29
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....ing grounds of appeal: "1. For that the order passed by the Ld. CIT(A) is bad in law and on facts as the Ld. CIT(A) erred in confirming the addition of Rs.. 40,18,699 by treating the same as business income instead of agricultural income being exempt u/s. 10(1) of the Act. The appellant therefore prays that the impugned addition be deleted and the Income of Rs.. 40,18,699 be treated as exempt agricultural income u/s. 10(1) of the Act 2. For that the Ld. CIT(A) failed to appreciate the true nature of the appellant's activities, as the land was rural agricultural land leased exclusively for cultivation of crops, and income arising therefrom is squarely covered by Section 2(1A). It is prayed that the Hon'ble Tribunal ....
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....not be treated as fatal and that exemption be allowed based on substantive evidence already furnished. 6. For that the Ld. CIT(A) failed to appreciate that the appellant had discharged his onus by producing lease deeds, mutation certificates, and location maps proving agricultural use of land, and rejection of such evidence without contrary material was arbitrary and contrary to natural justice. The appellant prays that the Hon'ble Tribunal be pleased to accept the evidences placed on record and direct deletion of the addition made by treating agricultural income as business income. 7. For that the Ld. CIT(A) erred in upholding an assessment order passed in violation of principles of natural justice, as the assessment ....
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....s. 40,18,699/-as agricultural income under Section 10(1) of the Act. The case was selected for limited scrutiny under CASS, notice under Section 143(2) of the Act dated 20.09.2016. Subsequently, other statutory notices were issued to the assessee. In response to the notices, the assessee participated in the assessment proceedings and produced their accounts, documents relevant to the assessment proceedings and produced bank statement, copy of Form No. 3CB and 3CD along with Profit & Loss Account, balance sheet, license and some other documents as per requisitions relevant to Financial Year 2014-15. On perusal of the trade license issued by Bapuji Gram Panchayet, South 24 Parganas mentioned that "you deal with fish and prawn and other docume....
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.... 08/2014 dated 26.09.2014 which clarifies that income from rearing and sale fish inland water fish tanks are inundated land shall be treated as business income. Since, the appellant maintained audited books and filed from Form 3CB and 3CD. The Assessing Officer held that concessional benefit applicable to non-audited fish farmers did not apply in this case. Consequently, the Assessing Officer has brought the entire amount of Rs. 40,18,699/- as business income and he affirmed the opinion of the Assessing Officer. 4. Aggrieved from the order of the Ld. CIT(A), the assessee is in appeal before the ITAT. 5. The Ld. Counsel reiterated the sub-missions made before the lower authorities and further submitted that in the financial statement t....
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....d and he further submitted that the Instruction issued by CBDT No. 8/2014 dated 26.09.2014 is administrative clarification for small non-audited fish farmers and cannot be invoked to deny statutory exemption otherwise available under the Act. The findings recorded by both the authorities is wrong, the assessee while preparing his financial statement has clearly classified agricultural income and non-agricultural income and expenditure too. In this regard, he produced the copy of P & L Account which is audited and placed on record. The exemption under Section 10(1) of the Act cannot be denied to the assessee. The expenditure claimed by the assessee in the profit and loss account has been accepted. 6. On the other hand, the Ld. DR supporte....