TaxTMI 
TaxTMI 
1999 (10) TMI 91
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....re argued were ground Nos. 5 and 6 which involve a single issue, namely, the action of the Department in treating a part of the income shown by the assessee as agricultural income by holding the same to be income earned from undisclosed sources and not from agricultural activities. 3. In the course of assessment proceedings the AO noticed that the return for the block period showed substantial agricultural income. It was noted as a fact that the assessee was the owner of land measuring 1.25 acres up to 1992-93 which went up to 4.62 acres in 1993-94. By means of an order-sheet entry dt. 17th Sept., 1996 the AO asked the assessee to prove the genuineness of the agricultural income shown in the return as also to furnish and substantiate the e....
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....sp; Rs. Rs. ------------------------------------------------------------ 1990-91 13,600 4,000 x 1.25 = 5,000 8,600 1991-92 12,060 4,500 x 1.25 = 5,625 6,435 1992-93 12,000 5,000 x 1.25 = 6,250 5,750 1993-94 31,700 &nb....
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....sment order which was on 27th Sept., 1996. As regards evidence in support of the assessee's figures, the learned counsel placed strong reliance on the letter of the Tehsildar/Patwari contending that the figure mentioned therein did represent an accurate working of the assessee's agricultural income. The further submission was to the effect that the Department could not tamper with the figure of agricultural income shown as this would amount to taxing the agricultural income itself which the Central Government could not do as it was a State subject. 5. On a query from the Bench about the maintenance of account books, vouchers, etc. by the assessee in respect of his agricultural income, the only reply given was that all incomings had been de....
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....ng to him, had certified the income to be a negative figure. He therefore, urged that the addition made by the AO be confirmed. 7. In reply the learned counsel for the assessee stated that the income of the assessee had been accepted in the past assessments prior to the present block assessment no doubt under ss. 143(1). On a query from the Bench the learned counsel stated that other than agricultural income the assessee had interest income from bank and other sources. 8. We have considered the rival submissions and also perused the material on record to which our attention was invited during the course of the hearing. The decisions cited at the Bar have also been duly taken into account. The first point we would like to decide is the que....
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.... agricultural operations are got done from outside by incurring heavy expenditure. In other words, the facts and figures given by the Krishi Gian Kendra, Kurukshetra are not strictly applicable as these envisage an ideal situation whereas each case has to be decided on its own facts. In the final analysis, we hold that in the present case it is not possible to work out the agricultural income either on the basis of the assessee's evidence or on the basis of the evidence which has been relied upon by the Department. 9. It may, however, be appreciated that the present is a case of block assessment subject to the newly introduced search and seizure provisions. These provisions take into account assessment completed on the basis of seized mate....
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....provisions and on the peculiar facts of the present case where only agricultural income has been touched and no other item of taxable income has been disturbed and there is no reference to any undisclosed investment and no seizure of cash or jewellery, we are not in a position to appreciate the stand of the Revenue to temper with the agricultural income converting the same into taxable income and that also on surmises and conjectures. In the earlier part of the present order, we have already referred to the information obtained from the Krishi Gian Kendra observing that this would apply to a given case and not to each and every case. The AO himself has noted as a fact that the assessee does not have any agricultural implements and gets all ....