×Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India
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This appeal by assessee has been directed against the order of Ld. CIT(A), Karnal, Dated 26th November, 2018 for assessment year 2015-16, challenging addition of Rs.10,78,544/-.
2. Briefly the facts of the case are that the return of income was filed on 16th March, 2016 declaring taxable income at Rs.2,70,010/- + agricultural income of Rs.24,78,544/-, which was processed under section 143(1) of the Income Tax Act, 1961. The case was selected for scrutiny to examine the issue of large agricultural income. The assessee derived income from salary and agricultural produce. The assessee was asked to produce Form-J, copy of fard, Jamabandi and bank account for relevant assessment year. The assessee produced copy of girdauri and capital account of assessee. The assessee claimed that he is owner of 48 Kanals of agricultural land and has also cultivated land of his brothers namely Shri Satbir and Shri Randhir Singh, who owned 96 kanals of agricultural land. Therefore, assessing officer asked for further details and details of family members of assessee. Assessee produced copy of fard of agricultural land owned by assessee. Perusal of fard reveals that the assessee owned 6 acres of agricultural land only, whereas the assessee has shown agricultural income of Rs.24,78,544/- in assessment year under appeal which is very much on the higher side as against the agricultural land owned by the assessee. The assessee was asked to furnish details of the land holdings by him along with the land taken on lease, in confirmation of the cultivation of agricultural land. The assessee submitted affidavit of Shri Satbir and Randhir Singh along with the copy of the agreement made with Shri Rajesh confirming the lease of land taken by assessee. The A.O. noted that reply of assessee would reveal that assessee cultivated 28 acres of land during the year, out of which, 6 acres owned by him and the remaining 22 acres was taken on lease from various persons. Ultimately, reply of the Counsel for Assessee was received through DAK in which assessee stated that it is not possible to produce balance sheet and statement of affairs of the assessee. However, bank statement of the assessee is produced and requested that agricultural income of Rs.10,97,931/- as per revised return filed by the assessee may be accepted.
2.1. The assessing officer noted that assessee is a partner in the firm M/s. Sun Research and Breeding Farm and the amount of salary and interest received from the firm has been shown as income from business or profession. The assessee was asked to furnish details of agricultural income earned. The assessee submitted that he was cultivating 48 kanals of agricultural land which is owned by him and 96kanals taken on lease from his brothers namely Shri Satbir and Shri Randhir Singh. The Commission Agent was also called for whose statement was recorded on oath who have stated that assessee has sold agricultural crops with them only during assessment year under appeal and prior to it or subsequent to assessment year no agricultural produce was sold and that sale consideration of agricultural produce was made in cash. Statement of Shri Satbir and Shri Randhir Singh were also recorded as they were produced by the assessee because of summons sent to them which could not be served upon them. In the statement of Shri Satbir, he has stated that he was retired as JBT Master and owns 6 acres of agricultural land, out of which, 4 acres are being cultivated by him and 2 acres has been given to the assessee on lease. He was asked to explain whether any loan has been taken on Kisan Credit Card on the agricultural land owned by him. In response thereto, it is stated by him that he has availed this facility from the