INCOME TAX ACT, 1961

Section 10(1)

Exemption under section 10(1) - Agricultural income - Assessee failed to produce purchaser of its agricultural produce - Assessee voluntarily admitted additional income

AO rejected assessee's claim of agricultural income to the extent of Rs. 10 lakhs for want of details/evidences, which was confirmed by CIT(A). It was contended on behalf of the assessee that the CIT(A) erred in confirming the said addition without adverting the evidences furnished by the assessee, i.e., confirmation letters from the purchasers of casurina and necessary certificates from Village Administrative Officer (VAO) to prove that the assessee was owner of the land and he had grown casurina plants on the said land. Held: It was found that the assessee filed a letter, wherein it was clearly stated that it could not produce purchaser of casurina and voluntarily admitted income of Rs. 10 lakhs out of its agricultural income. Therefore, the addition made by the AO and sustained by the CT (A) was on sound footing, which did not require any disturbances.