TaxTMI 
TaxTMI 
2026 (3) TMI 1184
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....ing the disallowances of agricultural income of Rs. 7,00,761/- and treating the same as unexplained under section 69A of the Act. 3. The facts in brief are that the assessee, an individual, filed return of income for the year under consideration declaring total income of Rs. 1,15,943/- and agricultural income of Rs. 29,24,800/- only. The AO observed that the assessee had declared agricultural income from cultivation of sugarcane and other crops on agricultural land situated at Buvvar village, Indi Taluk, Vijayapura District, Karnataka. During the assessment proceedings, the assessee stated that he owned about 39 acres of agricultural land and produced certain documents such as RTC, khatauni, copies of contracts, sale bills, and bank stat....
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....hivanan (ITA No. 2451/Chny/2018 dated 22.01.2019). 6.1 The assessee further submitted that against agricultural sale of Rs. 34,50,000/- declared in the return, bills and vouchers of Rs. 27,49,239/- sold to registered dealer were already furnished which is about 80% of the total receipts. The remaining 20% relates to sales made directly in the local market where bills were not maintained. The assessee being an individual farmer maintains only Tippani books to record sales. 6.2 It was also submitted that where sales were made to registered dealers, documentary evidence such as bills and account statements were furnished. In respect of sales made to unregistered dealers or direct consumers, such documentary evidence is generally not avai....
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....ITA No. 1105/Bang/2024, and Ishwar Chander Pahuja v. ACIT in reported in 209 ITD 52 Delhi and the judgment of the Hon'ble Delhi High Court in CIT v. Hersh Washesher Chadha reported in 297 taxman 471. 8.1 Regarding the amount of Rs. 1,84,969, the Ld. AR submitted that the amount was received on account of sale proceeds of sugarcane to M/s KPR Sugar Mills Pvt ltd. in previous year which was credited in the bank of his son. His transferred the same to the assessee's bank account on 16.01.2021 and the assessee follows cash system of accounting. Therefore, the amount was rightly reported in the return for the year under consideration. 8.2 Regarding the amount of Rs. 5,15,792/-, the Ld. AR submitted that the same represents direct sale of a....
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....tural sales. In the absence of proper documentary evidence, the AO was justified in doubting the genuineness of the receipts and treating the same as unexplained under section 69A of the Act. 9.1 The Ld. DR further submitted that the Ld. CIT(A) had provided sufficient opportunities to the assessee during appellate proceedings, however the assessee failed to appear or produce any additional evidence. Therefore, the Ld. CIT(A) was justified in deciding the appeal on the basis of materials available on record and confirming the addition made by the AO. 10. We have heard the rival contentions of both the parties and perused the materials available on record. The issue involved in the present appeal relates to the addition of Rs. 7,00,761/....
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....unexplained money and fails to offer a satisfactory explanation regarding the nature and source thereof. In the present case, the assessee has explained that the receipts represent sale proceeds of agricultural produce grown on his agricultural land. The AO has not brought any material on record to show that the assessee had any source of income other than agriculture or that the impugned amount represents unexplained money. In our considered view, the addition has been made merely on suspicion arising from the absence of certain vouchers, which cannot be sustained in law. With regard to the amount of Rs. 1,84,969/- received from the assessee's son, the explanation of the assessee that the same represents sale proceeds of agricultural produ....