Addition made by AO by treating Agricultural Income as income from Undisclosed Sources : ITAT Deletes Addition [Read Order]

The Chandigarh bench of the Income Tax Appellate Tribunal (ITAT) deleted the addition made by the assessing officer by treating the agriculture income as income from the undisclosed sources. 

Lalit Kumar, the appellant assessee claimed the agricultural income. The assessing officer observed that the agricultural income could have been assessed in the name of the owner of the land and not in the name of the assessee and made an addition on ground of agricultural income as the income from the undisclosed source. The Commissioner of Income Tax (Appeals) confirmed the addition made by the assessing officer. 

Thus the assessee appealed against the order passed by the Commissioner for confirming the addition made by the assessing officer. 

Vishal Mohan and Aditya Sood, the counsels for the assessee contended that the land was standing in the name of the father of the assessee, which does not mean that the assessee did not have the aforesaid agriculture income and it was not necessary for claiming agriculture income, land must be in the name of the agriculturist. 

It was also submitted that the land was standing in the name of the father of the assessee and the father of the assessee had not booked any extra agriculture income and the agriculture property and cultivation thereupon had not been denied. 

Amanpreet Kaur, the counsel for the revenue strongly opposed the contentions made by the assessee and supported the decisions made by the lower authorities.  A single-member bench comprising Sanjay Garg( Judicial) held that the addition made by the assessing officer to the agricultural income as income from undisclosed sources was liable to be deleted while allowing the appeal filed by the assessee.

To Read the full text of the Order CLICK HERE

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