Shri. Neelakanth Kuntoji Basavaraj vs. ITO

Parties Involved

Facts Summary

The assessee, Shri. Neelakanth Kuntoji Basavaraj, is engaged in the business of manufacturing fabricated metal products. For the Assessment Year 2020-21, the assessee filed a return of income declaring a total income of Rs.33,13,640/- and net agricultural income of Rs.27,76,000/-. The assessment was selected for limited scrutiny under CASS to examine the claim of receipt of agricultural income. The Assessing Officer (AO) noticed that the assessee had shown gross receipts from agricultural produce to the tune of Rs.48,54,000/- and expenditure incurred for earning the said agricultural income was shown at Rs.20,74,000/-. The AO issued several notices under section 142(1) of the Act, but there was no response from the assessee. The AO estimated the gross receipts at Rs.2,22,358/- and the total expenditure at Rs.1,16,207/-. The net agricultural income was estimated at Rs.1,06,151/-. The AO added Rs.46,27,658/- under section 68 of the Act as income from undisclosed sources. The assessee filed an appeal before the First Appellate Authority, which passed an ex-parte order. The assessee then filed the present appeal before the Tribunal.…

Legal Issues

• 1. Whether the sum of Rs.27,76,000 received as agricultural income was correctly accepted by the Assessment Unit and the National Faceless Appeal Centre.
• 2. Whether the National Faceless Appeal Centre erred in confirming Rs.46,27,658 as income of the assessee.
• 3. Whether the addition of Rs.18,51,658 (i.e.Rs.46,27,658 minus Rs.27,76,000) is unjustified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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