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TMI Blog2021 (6) TMI 849X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of potato and has taken the receipt of cash from one of the parties (Noor Traders) as explained. The CIT(A) has rejected the source of cash from other party (Dariyalal Aloo Bhandar) primarily on the ground of lack of confirmation. The assessee has supported the closure of the business of Dariyalal Aloo Bhandar by way of affidavit from the surrounding farmers who were having the personal knowledge of the fact of the closure of the shop since 2016. The agricultural land of 46 Bigha appears sufficient to support the production of potato as claimed - the benefit of doubt, in our mind, must go to the assessee who happens to be a farmer and from whom the due diligence of highest level for storage of evidence is not necessarily expected - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduce like potato comes to the farm and make the payment against the delivery which in legal sale-transaction as the purchaser has taken the delivery on the farm and issues the bills against the payment in cash. The Ld. AO has made addition of this amount as unexplained cash deposit in the bank and the Ld. CIT(A) has confirmed without considering the legal and factual position in the farm commodity. Therefore, it is prayed that the addition confirmed by Ld. CIT(A) be directed to be deleted in the interest of justice. 3. We have perused the assessment order and the order of the CIT(A) and material placed on record. The controversy involved is on account of addition of ₹ 27,20,249/- towards unexplained cash deposits in the ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 27,20,249/- was confirmed owing to non-confirmation from Dariyalal Aloo Bhandar. It was also observed that individual share in land is not sufficient to produce Potato of such quantity purportedly sold to Dariyalal Aloo Bhandar. 5. In this regard, it was contended on behalf of assessee that: (i) It is a normal practice that harvesting of potato is a specific period during which the farmer sales and gives the delivery at farm itself and therefore period of sales is a specified span of time due to perishability of the agricultural product and purchaser pickup from the farm and make the payment to the farmer. Therefore the Bills produced before AO were for the period between 06/04/2014 to 08/05/2014. (ii) The AOs observation that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of this fact the assessee submits the affidavit (Panchnama) (produced herewith along with translation in English) from surrounding farmers who are aware of the fact that Dariyalal Aloo Bhandar is absconding from market due to heavy business losses. (v) Further, the Panchanama of the witnesses of the shops near Dariyalal Aloo Bhandar (produced herewith along with translation in English) specifically states that the said firm was in existence in shop No. 69 and was carrying on the business however since last three years the said firm is found to be closed. (vi) Further, the certificate from the Agricultural Produce Market Committee, Bhuj is received by the assessee (produced herewith along with translation in English) showing that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en the receipt of cash from one of the parties (Noor Traders) as explained. The CIT(A) has rejected the source of cash from other party (Dariyalal Aloo Bhandar) primarily on the ground of lack of confirmation. The assessee has supported the closure of the business of Dariyalal Aloo Bhandar by way of affidavit from the surrounding farmers who were having the personal knowledge of the fact of the closure of the shop since 2016. The agricultural land of 46 Bigha appears sufficient to support the production of potato as claimed. Under these circumstances, the benefit of doubt, in our mind, must go to the assessee who happens to be a farmer and from whom the due diligence of highest level for storage of evidence is not necessarily expected. We t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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