Telangana HC Denies Agricultural Income Exemption for Uncultivated Land

Patnala Srinivas Vs ITO (Telangana High Court) In the case of Patnala Srinivas vs. ITO, the Telangana High Court dismissed the assessee’s appeal concerning the addition of ₹2,25,000 as unexplained income under Section 69A of the Income Tax Act, 1961. The assessee, engaged in the supply of building materials, had declared this amount as agricultural income in his tax return for AY 2000-01. However, the Assessing Officer, based on an inspection report, found that the land was plotted for development and not under cultivation. The Commissioner of Income Tax (Appeals) and the Income Tax Appell...