S.2(1A): Agricultural Income-Assessee filing letter explaining ownership of agricultural land
purchased in 1986-87 and disclosing capital gains on sale thereof in subsequent year-Seized
material not suggesting inflation of agricultural income-Income not to be treated as income from
other sources. [S. 153A]
The Assessing Officer made an addition on the ground that no agricultural lands were recorded in the
balance-sheet and the assessee had not shown any documentary evidence in support of his claim. He
accordingly treated the income claimed as not agricultural income but as income from other sources.
Before the Commissioner (Appeals) the assessee contended that complete details of agricultural holdings
were filed before the Assessing Officer and that he had also offered capital gains to tax on sale of
agricultural lands in the financial year 2005-06, which was accepted by the Assessing Officer. The
Commissioner (Appeals) held that this sort of addition could not be made in an assessment completed
under section 153A without any reference to the seized material and that it was also not the case of the
Assessing Officer that the seized material, if any, suggested inflation of agricultural income.
The Commissioner (Appeals) treated the income as agricultural income and not as income from other sources as the assessee had filed a letter explaining that the ownership of the agricultural land purchased in the year 1986-87 by way of proper evidence and the requirement of using material being found during the
course of search operation was not of any relevance and that it was not the case of the Assessing Officer
that the seized material, if any, suggested inflation of agricultural income. On appeal :Held, that the order
of the Commissioner (Appeals) was correct. (A.Ys. 2002-2003 to 2008-2009 )
purchased in 1986-87 and disclosing capital gains on sale thereof in subsequent year-Seized
material not suggesting inflation of agricultural income-Income not to be treated as income from
other sources. [S. 153A]
The Assessing Officer made an addition on the ground that no agricultural lands were recorded in the
balance-sheet and the assessee had not shown any documentary evidence in support of his claim. He
accordingly treated the income claimed as not agricultural income but as income from other sources.
Before the Commissioner (Appeals) the assessee contended that complete details of agricultural holdings
were filed before the Assessing Officer and that he had also offered capital gains to tax on sale of
agricultural lands in the financial year 2005-06, which was accepted by the Assessing Officer. The
Commissioner (Appeals) held that this sort of addition could not be made in an assessment completed
under section 153A without any reference to the seized material and that it was also not the case of the
Assessing Officer that the seized material, if any, suggested inflation of agricultural income.
The Commissioner (Appeals) treated the income as agricultural income and not as income from other sources as the assessee had filed a letter explaining that the ownership of the agricultural land purchased in the year 1986-87 by way of proper evidence and the requirement of using material being found during the
course of search operation was not of any relevance and that it was not the case of the Assessing Officer
that the seized material, if any, suggested inflation of agricultural income. On appeal :Held, that the order
of the Commissioner (Appeals) was correct. (A.Ys. 2002-2003 to 2008-2009 )
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