SHRI VERINDER KUMAR DHALL,ASANSOL vs. A.C.I.T.,CIRCLE-2, ASANSOL

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ITA 2031/KOL/2019Status: DisposedITAT Kolkata22 May 2020AY 2015-162 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found the declared agricultural income of ₹30,000 per acre to be reasonable, considering the assessee owned 16 acres of land. The distinction made by the CIT(A) between income received by cheque and other income was deemed incorrect.

What were the facts?

The assessee claimed ₹5 lakhs as agricultural income, which the AO disallowed. The CIT(A) allowed ₹70,000 as agricultural income and confirmed the balance addition of ₹3,30,000.

What were the issues?

Whether the entire amount claimed as agricultural income was genuine, and if the partial relief granted by the CIT(A) was justified.

Which sections of the Income-tax Act were involved?

Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘SMC’ BENCH, KOLKATA

Before: Shri J. Sudhakar Reddy]

order

: May 22nd, 2020 ORDER

Per J. Sudhakar Reddy, AM:

1.

This is an appeal filed by the assessee directed against the order of the Commissioner of Income Tax (Appeals), Asansol [‘CIT(A)’ for short] dated 18.06.2019 u/s 250 of the Income Tax Act, 1961 (‘the Act’ for short) for AY 2015-16.

2.

The sole addition in this case made by the AO is on account of ₹5 lakhs. The assessee claimed the same as agricultural income. The AO disbelieve the same. On appeal the ld. first appellate authority granted part relief. He held that the amount of ₹70,000/- received by the assessee by way of a cheque is the agricultural income and the balance addition of ₹3,30,000/- was confirmed. 3. Aggrieved, the assessee is in appeal before me. 4. After hearing rival contentions, I find that the assessee has 16 acres of land in Patti Dogar, Kaithal, Tehsil & District Kaithal in the State of Haryana. From the agricultural income declared by the assessee is around ₹30,000/- per acre. This, in my view is reasonable and cannot be considered as excessive income declared from agriculture. The assessee has declared similar amount as agricultural income earned for the earlier year and subsequent years also. The assessee has filed copies of the land Assessment Year: 2015-16 Shri Verinder Kumar Dhall. records and declarations. The fact that the assessee has agricultural land in Haryana is not disputed by the AO. Treating the amount received by cheque as agricultural income and the balance as non-agricultural income by the ld. CIT(A), in my opinion is not correct under the facts and circumstances of the case.

5.

Under these facts and circumstances of the case, I delete the disallowance and allow this appeal of the assessee.

6.

In the result, this appeal of the assessee is allowed. Kolkata, the 22nd May, 2020.

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