The Chennai bench of Income Tax Appellate Tribunal ( ITAT ) recently upheld the addition made by the assessing officer ue to failing to provide the genuine income from the agriculture activities.
The Assessee D. Ramagopal was included in a search carried out by the Income Tax Department and the department found certain documents / papers were seized. After imposing penalty the assessee filed return of income only on 02.01.2016 declaring ‘nil’ income and admitting agricultural income of Rs.3.50 Lacs.
Before the assessing officer the assessee stated that it had no income except for agricultural income of Rs.3.50 Lacs out of agricultural activities carried out by him in agricultural land in his name. However, the assessee could not file working of agricultural income except for filing of Mandi receipts for sale of agricultural produce.
Accordingly, AO held that the income was not genuine. The claim of income was rejected. Since no statement of affairs was filed by the assessee and the application of bogus agricultural income was not available, no addition was made on this account
Aggrieved by the order the assessee filed another appeal before the CIT(A), who dismissed the appeal of the assessee. Accordingly the assessee filed another appeal before the tribunal.
After reviewing the facts the ITAT bench of Mahavir Singh, ( Vice President ) and Manoj Kumar Aggarwal (Accountant Member) observed that the assessee has made unsubstantiated claims of agriculture income. Whatever documents have been filed by the assessee to support this income, has been found to be bogus and non-genuine. Therefore, the claim made by the assessee has rightly been denied.
Jhabakh, the counsel appeared for assessee and Nilay Baran Som ,counsel appeared for revenue.
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