SUSHMI'S ESTATES,HYDERABAD vs. INCOME TAX OFFICER, WARD-4(5), HYDERABAD

The assessee’s sole substantive grievance canvassed in the instant appeal challenge correctness of both the lower authorities’ action disallowing of its agricultural income claim of Rs.19,91,780/- pertaining to 20 acres of land stated to be located in Gulbarga, Karnataka.

Learned counsel’s only case is that the assessee had very well placed on record the sale of agricultural production document along with revenue records that the impugned sum represents agricultural income only entitled for Section 10(1) exemption.

The Revenue, on the other hand, has placed very strong relevance on the lower authorities’ orders.

We have given our thoughtful consideration to the rival pleadings. The fact remains that neither the assessee has been able to prima-facie substantiate each and every sale instance of the alleged crop produced nor there is any specific fault found therein as per the lower authorities’ orders. We therefore deem it appropriate in the larger interest of justice that a lumpsum agricultural income credit of Rs.10 lakhs out of the disallowance/addition amount of Rs.19.91 lakhs would be just and proper. We have confirmed the addition to the tune of Rs.9,91,780/- in other words. Necessary computation shall follow as per law. It is further clarified that our instant estimation shall not be taken as a precedent in any other case or assessment year.

This assessee’s appeal is partly allowed in above terms.