Nitesh Nath Shah Deo Vs DCIT (ITAT Ranchi)
Agricultural Income Allowed After Physical Verification – Addition Deleted
The Ranchi Bench of the Income Tax Appellate Tribunal allowed the appeal of Shri Nitesh Nath Shah Deo for AY 2015-16, deleting the addition made on account of alleged non-genuine agricultural income.
Key highlights of the ruling are:
- Claim of Agricultural Income:
The assessee, owner of about 64 acres of ancestral land, had declared agricultural income of ₹13.20 lakh, which was disallowed by the Assessing Officer (AO) for want of proof. - Remand & Physical Verification:
During appellate proceedings, a remand report was called for. The AO deputed inspectors who physically visited the land and confirmed that:- About 25 acres were under agricultural use,
- Land was irrigated and cultivated,
- Crops such as paddy (Kharif) and wheat, pulses, mustard, green vegetables (Rabi) were grown,
- No commercial or residential activity was found on the land.
The inspection report and supporting documents formed part of the record.
- Tribunal’s Finding:
Once the Revenue’s own inspection confirmed agricultural operations, there was no basis to sustain the disallowance. The Tribunal held that the addition made by the AO and confirmed by the CIT(A) was unsustainable. - Final Outcome:
- Addition on account of agricultural income deleted
- Appeal allowed in full in favour of the assessee
Practical Significance:
This decision reiterates that on-ground verification and factual evidence prevail over presumptions, and where the Revenue itself confirms agricultural activity, denial of agricultural income cannot survive.
