Quick Summary
The Income Tax Appellate Tribunal (ITAT), Bangalore Bench has granted relief to a landowner who reported Rs 1.82 crore income from mango sales, after the Income Tax Department added Rs 1.20 crore as unexplained cash credit under Section 68 of the Income Tax Act. The case involved an assessee from Chittoor district, Andhra Pradesh, who owned around 22 acres of mango orchards. He filed his income tax return for AY 2020-21, declaring income of about Rs 48 lakh. However, tax officials questioned th
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FAQ :
The Income Tax Department added Rs 1.20 crore as unexplained cash credit to a landowner's declared income of Rs 1.82 crore from mango sales, based on online yield and price estimates.
The landowner submitted affidavits from contractors, proof of buyers and payments, and evidence of agricultural activity on his mango orchards.
The tribunal found that the assessing officer relied only on internet-based estimates without verifying on-ground facts like mango variety, quality, or actual yield, and that the assessee had discharged the burden of proof.
The ruling reinforces that farmers must maintain clear documentation, such as buyer invoices and yield details, to substantiate agricultural earnings and prevent tax additions based solely on general online data.
The Commissioner of Income Tax (Appeals) had previously deleted the addition made by the tax department, a decision upheld by the ITAT Bangalore.
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