Maroon Organic Farming Pvt Ltd Vs ITO (ITAT Delhi)
ITAT remands issue of lease rent from agricultural land, holds assessee entitled to fresh opportunity to prove agricultural use by lessee
Delhi ITAT set aside the addition of ₹78.12 lakh made u/s 68 by AO treating lease rent & advance received on leasing of agricultural land as undisclosed income, where AO & CIT(A) denied exemption u/s 10(1) merely on the ground that lessees did not respond to notice u/s 133(6) & assessee allegedly failed to prove agricultural operations.
Tribunal noted that assessee had filed lease deeds, land details & explanations & that reasonable opportunity was not granted to substantiate that land was used for agricultural purposes by lessees. Holding that denial of agricultural income exemption without proper enquiry & adequate opportunity was unjustified, Tribunal restored the matter to the file of AO with direction to decide the issue afresh after making necessary enquiries & granting due opportunity to Assessee to establish that lessees carried out agricultural activities on the leased land. Appeal was thus allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by the assessee is preferred against the order of the NFAC, Delhi dated 25.01.2024 pertaining to A.Y. 2017-18.
