The Tax Publishers2021 TaxPub(DT) 0178 (Del-Trib)

INCOME TAX ACT, 1961

Section 143(3)

Where assessee filed his return of income under head Profits and gains from business or profession” along with agricultural income and AO made addition on allegation that assessee failed to produce details of total sale proceeds of the agricultural produce sold and also failed to produce details of expenditure incurred on the agricultural activities, considering evidences filed by the assessee and the statement of the Sarpanch of the village along with Certificate given by him, i.e., Sarpanch and in view of the huge ownership of land by the assessee for which the assessee produced all the documentary evidences, revenue was not justified in making addition on estimate basis.

Assessment - Additions to income - Addition towards sale proceeds of the agricultural produce - Assessee produced all the documentary evidences towards ownership of land and towards carrying on agricultural activities

Assessee filed his return of income under head profits and gain from business or profession” along with agricultural income. Case of the assessee was selected for limited scrutiny and assessee failed to produce details of total sale proceeds of the agricultural produce sold and also failed to produce details of expenditure incurred on the agricultural activities. Case of assessee was that agricultural income was disclosed at higher figure due to typographical mistake. AO made addition while assessing the total income under section 143(3). Held: Keeping in view of the evidences filed by the assessee and the statement of the Sarpanch of the village along with Certificate given by him, i.e., Sarpanch and in view of the huge ownership of land by the assessee for which the assessee produced all the documentary evidences, AO as well as CIT(A) made and confirmed the addition in dispute only on estimate basis and disallowed the same on the basis of the documentary evidences rejecting the claim of the assessee which was on the basis of the evidences of the revenue authorities. Thus, addition in dispute was wrongly made by the revenue authorities without any basis and the same was not sustainable in the eyes of law and was deleted in the interest of justice.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15



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