Mere holding of Agricultural land not proves earning of agriculture income

FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-

All the appeals by assessee are directed against the different orders of learned Commissioner (Appeals), Muzaffarnagar dated 21-10-2014 for assessment years 2008-09, 2007-08 and 2009-2010.

2. I have heard the learned Representatives of both the parties and perused the material on record. The issues are common in all these appeals. Therefore, all the appeals are heard together and I dispose of the same through this common consolidated order. The appeals are decided as under.

ITA.No. 348/Del./2015 (A.Y. 2008-2009) :–

3. The facts of the case are that in this case an inquiry was conducted on 29-5-2009 and it was gathered that assessee was running a newly constructed banquet hall namely, M/s. Tirupati Palace at Indira Colony, G.T. Road, Muzaffarnagar. Since assessee was not assessed to tax, therefore, the assessing officer issued notice under section 142(1) of the Income Tax Act, requiring the assessee to furnish return of income. However, no compliance was made. Subsequently, the assessing officer issued notice under section 148 of the Act. In response there to, assessee submitted that original return filed on 29-1-2010 be treated as return filed in compliance to notice under section 148 of the Income Tax Act. Thus, the assessing officer issued detailed questionnaire seeking explanation of the assessee. The assessee contended that the construction of banquet hall started from April, 2006 and completed on 31-10-2008 at land measuring 116.99 Sq. Mts. Which was purchased on 18th November, 2005 for a consideration of Rs. 15,48,000. Further, adjoining land measuring 89.405 sq. was purchased on 28-3-2006 for Rs. 2,55,000. The assessee in her written submissions admitted tax liability of Rs. 53,470 for assessment year 2006-07. It was further submitted that investment in construction of banquet hall was at Rs. 28 lakhs and source of investment was explained as under :