Law:

Section:

Section 2(1A) of the Income-tax Act, 1961 - Agricultural income - Assessment year 2002-03 - Assessee had declared agricultural income of Rs. 7,50,000 from cultivation of 42 acres of agricultural land - In support of said declaration, he had produced revenue record, J-forms and certificate of average income per acre of land issued by village Patwari, and claimed that agricultural income was net of expenses at rate of 25 per cent - However, Assessing Officer determined his agricultural income at Rs. 5,52,561 holding that yield declared was high, and taxed remaining income as income from other sources - Commissioner (Appeals) confirmed order of Assessing Officer - However, on second appeal, Tribunal set aside order of Commissioner (Appeals) holding that assessee had produced evidence on record in support of his claim; and that income declared by him on an estimated basis was bona fide - Whether since Tribunal had given a pure finding of fact after considering evidence on record with regard to agricultural income of assessee and there was no material on record to show any vested interest or motive of assessee to declare agricultural income higher than actual amount, Tribunal's order was to be upheld - Held, yes FACTS The assessee had declared agricultural income at Rs. 7,50,000 from cultivation of 36 acres of own agricultural land and 6 acres of leased agricultural land. In support of the said declaration, he had produced revenue record, J-forms and claimed that the agricultural income was net of expenses at the rate of 25 per cent. However, the Assessing Officer determined his agricultural income at Rs. 5,52,561 holding that the yield declared was high and taxed the remaining income as income from other sources. On appeal, the Commissioner (Appeals) confirmed the order of the Assessing Officer. On second appeal, the Tribunal set aside the order of the Commissioner (Appeals) holding that the assessee had produced evidence on record in support of his claim; and that income declared by him on an estimated basis was bona fide. On the revenue's appeal : HELD There was no merit in the contention raised by the revenue. The Tribunal had given a pure finding of fact after…

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