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Facts
The assessee claimed agriculture income of Rs. 13,20,000/-, which was disallowed by the AO on the grounds that no agricultural operations were proved. The assessee claimed ownership of 64 acres of ancestral land and stated that agricultural operations were indeed being conducted.
Held
The inspector's report confirmed that 25 acres of land were being used for agricultural operations, with crops like paddy, wheat, pulses, mustard, and green vegetables being grown. No commercial or residential activities were found on the land.
Key Issues
Whether the disallowance of agriculture income claimed by the assessee is justified when the land is used for agricultural operations.
Sections Cited
Section 65 of the Income Tax Act
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Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI
Before: SHRI GEORGE MATHAN, JM & SHRI RATNESH NANDAN SAHAY, AM
O R D E R Per Bench : This is an appeal filed by the assessee against the order passed by the ld.Addl/JCIT(A), Bengaluru, dated 28.03.2025 for the assessment year 2015-2016.
It was submitted by the ld. AR that the assessee owns 64 acres of land and the same is ancestral land. The assessee had claimed agriculture income of Rs.13,20,000/- which was disallowed by the AO on the ground that there was no proof of agriculture operations being done. The ld. AR submitted that agriculture operations are being done. Consequently, a remand report had been called for from the AO. After physical verification the AO has submitted his remand report which reads as follows :-
It was the submission of the ld. AR that the addition made by the AO and confirmed by the ld. CIT(A) deserves to be deleted.
In reply the Ld. Sr DR vehemently supported the order of AO and CIT(A).
We have considered the rival submissions. The inspector of the AO’s office has visited the site and has found 25 acres of land on which agriculture operations have been done. As it is noticed that agriculture operations having been done and confirmed by the inspector of the revenue, the addition made by the AO and as confirmed by the CIT(A) stands deleted.
In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 06/01/2026.