What did the Tribunal hold?

The Tribunal held that the assessee should be given an opportunity to produce evidence regarding the sale of trees. The matter was remanded back to the Assessing Officer for a fresh decision.

The assessee claimed ₹ 4 lacs as agricultural income from the sale of trees. The Assessing Officer rejected this claim as trees were not mentioned in the Khasra Girdawari and the buyer was not produced. The CIT(A) confirmed this.

What were the issues?

Whether the income from the sale of trees can be considered agricultural income, and if the assessee was denied a proper opportunity to present evidence.

Sh. Jarnail Singh, Rajpura vs ITO | ITAT Chandigarh 2019

आदेश/Order

The present appeal has been preferred by the assessee against the order dated 22.08.2018 of the Commissioner of Income Tax (Appeals), Patiala [hereinafter referred to as ‘CIT(A)’].

The assessee in this appeal is aggrieved by the action of the lower authorities in not accepting the income of ₹ 4 lacs as agricultural

income of the assessee out of the total agricultural income of the assessee of ₹ 22 lacs. The Assessing officer though accepted the claim

of the assessee regarding the agricultural income of ₹ 18 lacs on the

basis of record of agricultural property and crop thereupon i.e. Khasra Girdawari submitted by the assessee, however, he rejected the claim of

ITA No. 1295-Chd-2018- Sh. Jarnail Singh,Rajpura 2 the agricultural income amounting to ₹ 4 lacs on the ground that the

assessee has shown the said income from the sale of trees. The

Assessing officer observed that in the khasra girdawari which is the

record of the Crop on the land maintained by the Land Revenue officer,

there was no mention of tress standing on the land or being cultivated by

the assessee. He also observed that the assessee had even not produced

the persons to whom the assessee allegedly sold these treees.

The Ld. CIT(A) also confirmed the aforesaid findings given by the

Assessing officer.

Before us, Ld. Counsel for the assessee has submitted that there

were 1200 Eucalyptus, 100 Kikkar and 50 Shisham trees standing on the

boundary as well as near tube well in the fields of the assessee. That the

Land Revenue officials as per the established procedure do not mention

about the standing trees on the boundary of the land and near tube well

connection in Khasra Girdawri.

So far as the non-production of Shri Ram Dyal who had purchased

the aforesaid trees is concerned, the Assessing officer never asked the

assessee to produce him. The Ld. Counsel for the assessee has further

submitted that the assessee is ready to furnish the requisite evidences in

this respect before the Assessing officer. That the lower authorities have

decided the case without giving proper opportunity to the assessee of

furnishing the necessary details.

ITA No. 1295-Chd-2018- Sh. Jarnail Singh,Rajpura 3

The Ld. DR has relied on the findings of the lower authorities.

Considering the rival submissions, we are of the view, that the

interest of justice will be well served if the assessee is given an

opportunity to produce the proper evidences regarding the standing trees

on his land and sale thereof by the assessee yielding agricultural income

of ₹ 4 lacs. The orders of the lower authorities are, therefore, set aside

and the matter is remanded back to the file of the Assessing officer to

decide this issue afresh in accordance with law after giving due and

reasonable opportunity of being heard to the assessee to present his case

including the report of the Revenue officials, if any, as well as

confirmations / statements of the alleged purchaser of the said trees.

In the result, this appeal of the assessee is treated as allowed for

statistical purposes.

Order pronounced in the Open Court on 03.06.2019

Sd/- (संजय गग� / SANJAY GARG) �या�यक सद�य/ Judicial Member Dated : 30.06.2019 “आर.के.” आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File

ITA No. 1295-Chd-2018- Sh. Jarnail Singh,Rajpura 4 आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar

SH. JARNAIL SINGH,RAJPURA vs. ITO, RAJPURA

What did the Tribunal hold?

What were the facts?

What were the issues?

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