Non-declaration of agricultural income in the return of income does not lead to a conclusion that the assessee had not earned any agricultural income

Non-declaration of agricultural income in the return of income does not lead to a conclusion that the assessee had not earned any agricultural income

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Non-declaration of agricultural income in the return of income does not lead to a conclusion that the assessee had not earned any agricultural income
LAIJI GEORGE PATTANIYIL HOUSE vs. INCOME TAX OFFICER (2019) 55 CCH 0093 CochinTrib.
  1. – Income from undisclosed sources—Unexplained investments
  2. —Assessee filed return of income which was selected for scrutiny
  3. —During assessment proceeding, assessee had credits in her Bank account held along with her husband
  4. —AO accepted explanation for a sum being gold loan from Bank
  5. —Further, a sum as agricultural income of assessee’s husband since he had disclosed said sum in his return of income
  6. —Balance amount was assessed u/s 69 as unexplained investments
  7. —Before CIT(A), assessee filed an agreement entered between assessee and Sri. A whereby, assessee had sold rubber trees, teak treas, Anjili trees
  8. —As per terms of agreement, a sum was received as advance—CIT(A) called for a remand report from AO—CIT(A) confirmed additions made by AO
  9. —Held, assessee might have missed out on declaring agricultural income on a bonafide belief that agricultural income need not be disclosed for Central income tax purpose as it does effect for rate purpose
  10. —Since assessee’s total income did not exceed non-taxable maximum of year, it was not required to show net agricultural income in as agriculture income did not make any impact in relation to rate of tax to be applied on total income
  11. —Non-declaration of agricultural income in return of income does not lead to a conclusion that assessee had not earned any agricultural income from cultivation of land owned by her
  12. —Assessee would have earned agricultural income—Assessee had produced agreement to support claim of receipt of agricultural income
  13. —Said agreement was not accepted by CIT(A) since assessee had not made out a case for exception to Rule 46A
  14. —Therefore, on a fair estimation of agricultural income out of 8.50 acres of land, there could be receipt of agricultural income
  15. —Accordingly, AO was directed to grant further reduction and balance should be brought to tax as an unexplained deposit in hands of assessee
  16. —Assessee’s appeal partly allowed.

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