Chandubhai Ramjibhai Kathiriya Vs CIT (ITAT Rajkot)
Summary: The appeal concerned an addition of Rs.14,32,782/- being 50% of the assessee’s agricultural income, treated by the Assessing Officer as unexplained cash credit under section 68 of the Income Tax Act, 1961 read with section 115BBE. The assessee, an individual and agriculturist, had filed his return declaring total income of Rs.340/- and agricultural income of Rs.28,65,563/- for AY 2017-18.
The assessee stated that he held 19.12 acres of agricultural land and produced Form No. 7/12 and other revenue records. He also relied upon agricultural income disclosed in earlier years: Rs.14,52,800/- for AY 2015-16 and Rs.29,92,400/- for AY 2016-17, while his gross total income for those years was only Rs.663/- and Rs.123/- respectively.
The Assessing Officer issued notice under section 133(6) to Radhe Fertilizer but received no response. He consequently considered 50% of the agricultural income to be reasonable and treated the balance Rs.14,32,782/- as unaccounted income introduced in the guise of exempt agricultural income.
The NFAC rejected the appeal, observing that the addition was factual, the affidavit was self-serving, and supporting evidence of agricultural operations had not been produced. Before the Tribunal, the assessee relied upon his landholding, an affidavit and earlier returns showing substantial agricultural income.
