AO Cannot Uniformly Apply 40% Expense Benchmark to Agricultural Revenue

Chaudhari Nanubhai Jeshingbhai (HUF) Vs DCIT (ITAT Ahmedabad)

The case of Chaudhari Nanubhai Jeshingbhai (HUF) vs. DCIT (ITAT Ahmedabad) addresses the issue of arbitrarily applying a standardized expense ratio to agricultural income without considering specific variations in agricultural practices, crop types, and local conditions. The appeal was filed against the order of the Commissioner of Income-Tax (Appeals)-4, Ahmedabad, which was dated 7th December 2018, for the assessment year 2015-16.

Facts and Background:

The sole issue in this appeal was th

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