ITA 381 of 2023 and others Bhoomika Agro Farms

Parties Involved

Facts Summary

The assessee, Bhoomika Agro Farms (P) Ltd, engaged in commercial agricultural activities and land dealing, filed its return of income for the assessment year 2020-21. A search and seizure operation was conducted, and cash receipts and agreements were seized. The assessee claimed to act as a mediator/aggregator for land pooling and procurement from farmers for Spectra Group. However, the Assessing Officer concluded that the assessee was engaged in the business of trading land and not merely acting as a mediator. The Assessing Officer added undisclosed cash receipts as income. The CIT(A) allowed the appeal partially, restricting the addition to 10% of the unaccounted cash receipts. The Revenue and the assessee appealed to the Tribunal.…

Legal Issues

• 1. Whether the assessee acted as a mediator/aggregator for land pooling to Spectra Group.
• 2. Whether the amount received from Spectra Group should be treated as income of the assessee.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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