AO cannot disallow agricultural expenses without any rational basis

Shrikrishna Khandsari Sugar Mills Vs ITO (ITAT Pune) The only issue raised in this appeal is against the confirmation of disallowance of Rs.4,19,970/- made by the Assessing Officer (AO) in respect of agricultural expenses. Briefly stated, the facts of the case are that the assessee has been engaged in manufacturing and trading in Khandsari sugar and jiggery and also in power generation. It continued to earn agricultural income in the year under consideration as well. The assessee declared gross agricultural receipts of Rs.47,78,862/- and agricultural expenses amounting to Rs.12,52,631/-. The A...