Be cautious : Exempt agricultural income can not be accepted in the absence of evidences regarding the performance of agricultural activity or expenditure or sale of the agriculture produce

Usha Umesh Mishra Vs ITO

Whether claim of exempt agricultural income can be accepted in the absence of evidences regarding the performance of agricultural activity or expenditure or sale of the agriculture produce – NO: ITAT

– Assessee’s appeal dismissed: MUMBAI ITAT

Whether claim of exempt agricultural income can be accepted in the absence of evidences regarding the performance of agricultural activity or expenditure or sale of the agriculture produce – NO: ITAT

++ assessee alongwith her family members are holding huge amount of land. That they have given the task to a person named Bablu to perform agricultural activity. That the person does all the work and incurs expenditure and after deducting the expense deposits the net receipts in assessee’s bank account. It was found that this was only a self serving statement. Not an iota of evidence is on record regarding the performance of agricultural activity or expenditure or sale of the agriculture produce. It was found that CIT(A) had correctly placed reliance upon a catena of case laws. He also referred to ITAT decision in assessee’s own group case wherein such claim of agricultural income was rejected. ITAT decision finds that after the purchase of land for Rs. 37,30,007/- the assessee has shown return of agricultural income in just two years more than the amount invested in land. The assessee was showing a specific amount of agricultural income but is not giving the details. It is clearly an unexplained deposit in bank which has been given the garb of agricultural income. Accordingly, assessee’s claim of agricultural income is totally bogus and not at all sustainable in law. In the result, appeal filed by the assessee is dismissed.

ITA No.2003/Mum/2018