Ad-hoc Estimation of Agricultural Income Rejected: ITAT Deletes Section 69A Addition

Kalur Basappa Shivaprakash Vs ITO (ITAT Bangalore) Ad-hoc Estimation of Agricultural Income Rejected: ITAT Deletes Section 69A Addition The assessee declared ₹50 lakh as agricultural income, which the AO partly disbelieved due to lack of bills, inconsistencies in crop details, and alleged improbabilities. The AO estimated income at ₹1 lakh per acre and treated the balance ₹15.55 lakh as unexplained income under Section 69A, alleging it to be a colourable device. The CIT(A) upheld the addition citing absence of supporting evidence as required under Rule 2 of Part IV of Schedule I. The ITA...