ITAT directs re adjudication in respect of addition made on receipts of agricultural activity [Read Order]

The Income Tax Appellate Tribunal (ITAT), Mumbai bench directed readjudication in respect of addition made on receipts of agricultural activity.

The assessee, Sanjib Sudhir Pradhan , has shown agricultural income of Rs. 6,25,200. During the reassessment proceedings, the AO observed that the assessee has stated that the sale of agricultural produce of Rs. 8,52,800 whereas during the reassessment proceedings, the same is shown at Rs. 12,84,980.

Ao further observed that mismatches in bills produced during the original proceedings and reassessment proceedings. Accordingly, the AO did not agree with the genuineness of the agricultural income earned by the assessee and treated the same as unexplained cash credit

Aggrieved, the assessee filed further appeal before the CIT(A) who held that the genuineness of the receipts from the agricultural produce is not proved and therefore it cannot be assumed that the assessee has carried out agricultural activity or earned any income thereof. Thereafter the assessee filed a second appeal before the tribunal.

The tribunal observed that the agricultural income is earned from the sale of agricultural produce. During the year under consideration, the assessee received a total of Rs. 12,34,980 from the sale of paddy to Mahalaxmi Enterprises. The assessee before the bench said that he does not hold any agricultural land.

So The bench considered that if the Revenue doubts the genuineness of the documents submitted by the assessee then it is either required to direct the assessee to produce the person who has executed such document or issue summons to such person in this regard.

Further tribunal observed that the  claim of the Revenue that the sale of agricultural produce was shown as Rs. 8,52,800, during the original assessment proceedings, whereas during the current reassessment proceedings, the same is shown as Rs. 12,34,980.

During the hearing, the AR placed on record the copy of the order passed by the  CIT(A) for the assessment year 2013-14, wherein it was accepted that the assessee was involved in agricultural activity.However, from the record, it is evident that in the present case, the Revenue has doubted this aspect.

After reviewing the facts and records, the two-member bench Of Om Prakash Kant (Accountant member ) and Sandeep Singh Karhail,(Judicial Member) directed readjudication in respect of addition made on receipts of agricultural activity.

Rituja Pawar Deswal, counsel appeared for assessee and P.D. Chogule , counsel appeared for revenue.

To Read the full text of the Order CLICK HERE

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