If the decision is made by admitted additional evidence without fulfilling the condition than the decision is not tenable

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The assessee claimed to be engaged in the business of agricultural activities in the name of Samak Farms & Nursery and held agricultural fields at various places in the districts of Ghaziabad and Gurgaon. In the return of income, assessee claimed agricultural income of Rs. 65,00,015/- and exemption of long term capital gains on sale of agricultural lands u/s 54B at Rs. 1,15,06,543/-. These aspects were examined and according to AO, during the course of assessment proceedings, assessee submitted contradictory statements while explaining the agricultural income. AO further found that assessee claimed to have made bulk sale of agricultural products to associate concerns viz. M/s Samak Landscape Pvt. Ltd. and M/s Samak Nature Resorts & Spa Pvt. Ltd. on credit basis and in lieu of these credit sales, the assessee acquired shares of SNR and Spa. AO held it to be a planned device to acquire shares by showing inflated agricultural income and made the addition by following observations: “In the light of the above I hold that the assessee has made bogus credit sales to the company to acquire shares in the company in which the assessee had substantial interest and has entered into a device to evade tax which is not permissible. In view of this the total credit sales made to M/s Samak Nature & Spa amounting to Rs. 65,00,015/- is being treated as income from other sources and not as agricultural income as claimed by the assessee hence the difference of the agricultural income declared and the disallowance comes to Rs. 8,90,541/- will be taxed as agricultural income for rate purposes.”

Citation :
Income-tax Officer, Ward 24(2), New Delhi.Appellant) Vs. Kuber Chand Sharma,5 CSC SFS Apartments,Haus Khas, New Delhi.PAN/GIR No. AAMPS8620G(Respondent)