Grow More Vs DCIT (ITAT Delhi)
Summary: The Income Tax Appellate Tribunal, Delhi SMC Bench, in Grow More Vs DCIT, ITA No. 6989/Del/2026, concerning Assessment Year 2021-22, partly allowed the assessee’s appeal relating to denial of an agricultural income exemption of Rs. 30,98,899 claimed under Section 10(1) of the Income-tax Act, 1961. The appeal arose from the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, dated 27 April 2026, involving an assessment under Sections 143(3) read with 144B. The Tribunal heard the matter and pronounced its order on 19 August 2026.
The assessee contended that its agricultural income exemption should be accepted because similar exemption claims had been allowed by the Department for Assessment Years 2022-23 and 2023-24. The disputed income was stated to arise from a plant nursery operated on land measuring one bigha, situated in the revenue estate of village Khamba, Joddhpur Highway, Tehsil Ahore, Jalore District, Rajasthan. The assessee also claimed that the land formed part of the capital reflected in its balance sheet.
The Tribunal observed that the assessee had failed to establish the ownership or use of the land and the claimed nursery activities to the complete satisfaction of the lower authorities. Consequently, it found no basis to accept the exemption claim in its entirety. However, considering the facts and circumstances, the Tribunal also held that the claim should not have been rejected completely.
The Tribunal accordingly directed partial acceptance of the claim to the extent of Rs. 10 lakh and stated that the assessee would receive relief of Rs. 20,19,899, with the necessary computation to follow. The order contains both figures, which are reproduced as recorded. No other ground or argument was pressed, and the appeal was partly allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
This assessee’s appeal for assessment year 2021-22, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2026-27/1088645890(1), dated 27.04.2026 involving proceedings under section 143(3) r.w.s. 144B of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
2. Heard both the parties. Case file perused.
3. The assessee’s sole substantive grievance canvassed in the instant appeal is that of denial of its Section 10(1) agricultural income exemption claimed u/s 10 of the Act of Rs. 30,98,899/- in both the lower authority’s respective orders. Suffice to say, its case accordingly is that the instant issue is no more res integra in the light of fact that they have accepted the very exemption claims in assessment years 2022-23 and 2023-24.
4. I have given my thoughtful consideration to the submissions of the assessee and the Revenue, respectively. I find no reason in the assessee’s case in its entirety. It is made clear that although it has claimed that the land in issue admeasuring one bigha, situated in the revenue estate of village Khamba, Joddhpur Highway, Tehsil – Ahore, Jalore District, Rajasthan forms part of its capital in balance sheet, and that a plant nursery is being run therefrom, the fact remains that it could not plead and prove the same in both the lower proceedings to the entire satisfaction of the learned departmental authorities. I am of the considered view in this backdrop that its claim could not have been denied in its entirety as well in the facts and circumstances of the case. It is thus deemed appropriate to accept the impugned claim to the extent of Rs. 10 lacs. The assessee get relief of Rs. 20,19,899/- in other words. Necessary computation shall follow.
5. No other ground or argument has been pressed.
6. The appeal filed by the assessee is partly allowed.
Order pronounced in the open court on 19th August, 2026
