2019 (3) TMI 259

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..... 20,00,000/- from agriculture. However, the Assessing Officer restricted the same to Rs. 12,00,000/- and the remaining amount of Rs. 8 lakhs was added to the taxable income. According to the Ld. counsel, the cultivation made by the assessee is not disputed. The reason for disallowance was made only on the ground that the assessee could not produce bills and vouchers for sale of agricultural produce. According to the Ld. counsel, when the cultivation is not disputed, the Assessing Officer ought not to have disallowed any portion of amount disclosed by the assessee. The Ld.counsel further clarified that the assessee, in fact, cultivated 22 acres of land. Referring to the copy of adangal extract, which is available at page 23 to 27 of the pap .....

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..... ties and before this Tribunal establishes that the assessee was cultivating paddy, coconut, teak, etc. on the subject land. Therefore, the CIT(Appeals) is not justified in saying that the assessee could not establish the fact of cultivation. The fact of cultivation is established by the assessee. Both the authorities below dispute the sale of agricultural produce. Since the assessee could not produce bills and vouchers for sale of agricultural produce and expenses, the claim of the assessee was disbelieved. 5. The Assessing Officer as well as the CIT(Appeals) have to appreciate the fact that the agricultural products in this country are traded in unorganized sector. The workforce in the agricultural sector is unorganized. When the agricul .....

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..... conut tree may yield 100-120 nuts in a year. Now the Agriculture Department and Agriculture University invented hybrid coconut varieties which give 150-200 nuts in a year. Therefore, estimation of yield in agriculture is something difficult and which needs to be appreciated by the authorities who are performing judicial function. When agricultural produce including coconuts is traded in unorganized market like Uzhavar Sandhai and other local market, expecting the assessee to produce bills and vouchers is nothing but asking the assessee to perform an impossible task. Therefore, this Tribunal finds no reason to disallow any claim of the assessee. Had the Assessing Officer found that the assessee has no land or he has not cultivated as claim .....

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