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Facts
The assessee filed two appeals against the orders of the Ld.CIT(A) for assessment years 2014-15 and 2015-16. The appeals were delayed by 112 days, which was condoned. The additions were made by the AO on account of cash payments for a flat purchase, which the assessee explained as agricultural income.
Held
The Tribunal acknowledged that the assessee owned 40 acres of agricultural land and derived income from tractor plowing, suggesting agricultural operations. The Tribunal granted a 50% relief on the additions made.
Key Issues
Whether the additions made by the AO on account of alleged unexplained cash payments for a flat purchase are justified, and if the explanation of agricultural income is acceptable.
Sections Cited
Section 263 of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, “SMC” BENCH CUTTACK
Before: SHRI GEORGE MATHAN
O R D E R These are two appeals filed by the assessee against the order of the Ld.CIT(A), National Faceless Appeal Centre (NFAC), Delhi both dated 26/12/2024 in Appeal No. NFAC/2013-14/10124904 and NFAC/2014- 15/10124911 for the assessment years 2014-15 and 2015-16 respectively.
At the outset, it is found that both the appeals of the assessee is barred by 112 days. In this regard, the assessee has filed an affidavit stating sufficient reasons for condonation of delay, which are plausible and not found to be false. Ld.Sr. DR also did not raise any serious objection to condone the delay. Accordingly, the delay of 112 days in filing the appeal by the assessee is condoned and the appeal of the assessee is admitted for hearing.
It was submitted by the Ld. AR that the assessee had along with his wife purchased a flat in Bhubaneswar for Rs.39,78,000/-. It was submission that in the course of assessment the assessee was asked in regard to the cash payment of Rs.6,88,000/- for the assessment year 2014-15 and Rs.2,78,000/- for the assessment year 2015-16. It was submission that as the assessee had explained that the assessee has 40 acres of agricultural land and the cash receipts are out of the sales proceeds of the agricultural produce. It was the submission that the AO did not accept the contentions of the assessee and made the additions of Rs.6,00,000/- for the assessment year 2014-15 and Rs.2,78,000/- for the assessment year 2015-16. It was the submission that as the assessee had explained that the assessee had 40 acres of agriculture land and the cash receipts were out of the sale proceeds of the agricultural produce. It was the submission that the AO did not accept the contentions of the assessee and made the additions of Rs.6,00,000/- for the assessment year 2014-15 and Rs.2,78,000/- for the assessment year 2015-16. It was the submission that the Ld. CIT(A) did not grant any relief to the assessee. It was the submission that the assessee owns 40 acres of agricultural land he also derives income from plowing of tractors and income from bank deposits. It was the submission that out of 40 acres of agriculture land 4 acres is a pond where he is also doing fishery business. It was the submission that the claim of the assessee for the amount of Rs.6,00,000/- and the Rs.2,78,000/- may be accepted.
In reply to a specific query the Ld, AR was unable to show that the assessee had showed agriculture income in any of its earlier year or subsequent years.
In reply the Ld. Sr DR vehemently supported the order of the AO and CIT(A). It was the submission that the assessee having not shown agriculture income in its return of income no relief was liable to be granted to the assessee.
I have considered the rival submissions. It is an admitted fact that the assessee is having agricultural land of 40 acres. It is also an admitted fact that the assessee is deriving income from tractor plowing thus, the ownership of the tractors is also not in dispute when there is an agricultural land and there is a tractor also. It would obviously mean that the assessee is doing some agricultural operation. This being so, considering the facts of the case that I am of the view that the assessee can be granted a 50% relief in so far as for the assesement year 2014-15 out of Rs.6,00,000/-, Rs.3,00,000/- can be treated as agriculture receipts and for the assessment year 2015-16 out of Rs.2,78,000/- , Rs.1,50,000/- can be treated as agriculture receipts. This being so the addition has made by the AO and confirmed by the Ld.CIT(A) of Rs,6,00,000/- for the assessment year 2014-15 stands reduced to Rs.5,00,000/- and Rs.2,78,000/- for the assessment year 2015-16 stands reduced to Rs.1,28,000/-.
In the result, appeals of the assessee are partly allowed for statistical purposes. Order dictated and pronounced in the open court on 24/09/2025.