LALJIBHAI JADAVJIBHAI SAVALIA,RAJKOT vs. INCOME-TAX OFFICER, WARD-1(1)(2), RAJKOT

आयकर अपीलीय अिधकरण, राजकोट �यायपीठ, राजकोट। In The Income Tax Appellate Tribunal, Rajkot Bench, Rajkot Before Dr. Arjun Lal Saini, Accountant Member And Shri Sonjoy Sarma, Judicial Member

आयकर अपील सं./ITA No. 965/RJT/2026 [ �नधा�रण वष�/Assessment Year: 2017-18 ] Laljibhai Jadavjibhai Savalia Income-tax Officer, Ward-1(1)(2), "Punya Bhumi", Paras Society, Near Vs. Aayakar Bhavan, Race Course Nirmala Convent School, Rajkot- Ring Road, Rajkot-360001, Gujarat 360005, Gujarat �थायीलेखासं./जीआइआरसं./PAN/GIR No.: ACNPPO399Q (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : Written Submission Respondent by : Shri Ganesh Iyer, Ld. Sr. DR Date of Hearing : 22/10/2026 Date of Pronouncement : 23/10/2026

:: ORDER :: Per, Shri Sonjoy Sarma, JM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2017-18, is directed against the order under section 250 of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’] passed by the National Faceless Appeal Centre [hereinafter referred to as ‘NFAC’], dated 19.05.2026, which in turn arises out of an order passed by assessing officer u/s. 143(3) of the Act, dated 30.12.2019. 02. Brief facts of the case are that the assessee filed his return of income for Assessment Year 2017-18 on 15.12.2017, declaring total income of Rs.2,59,350/- and agricultural income of Rs.99,90,071/-. The return was processed under section

ITA No. 965/RJT/2026 Laljibhai Jadavjibhai Savalia 143(1) of the Income-tax Act, 1961, and the case was selected for limited scrutiny through CASS on the issue of substantial agricultural income claimed by the assessee. Accordingly, notice under section 143(2) of the Act was issued on 11.08.2018, followed by notices under section 142(1) of the Act, calling for details and supporting evidence relating to agricultural activities, landholdings, crop-wise production, sale bills, expenditure and bank statements. During the assessment proceedings, the Assessing Officer observed that the assessee had disclosed gross agricultural receipts of Rs.1,66,50,118/-, agricultural expenditure of Rs.66,60,047/- and net agricultural income of Rs.99,90,071/-. The assessee claimed to have cultivated cotton on agricultural land measuring 22.9314 hectares and produced 2,72,438 kilograms of cotton during the relevant previous year. The yield so declared was considered abnormally high by the Assessing Officer in comparison with the average yield data available from Government sources. After issuing a show-cause notice and examining information obtained from the Ministry of Agriculture and Farmers Welfare, Junagadh Agricultural University and other agricultural authorities, the Assessing Officer initially estimated the permissible yield by reference to the national average. However, after considering the assessee's submissions regarding advanced agricultural techniques, improved farming practices, irrigation facilities and cultivation of additional agricultural land belonging to relatives, the Assessing Officer estimated that the assessee had cultivated approximately 200 vighas of land. By allowing a yield of 1,000 kilograms per vigha, the Assessing Officer estimated the possible cotton production at 2,00,000 kilograms. Since the assessee had disclosed cotton production of 2,72,438 kilograms, the Assessing Officer treated the excess production of 72,438 kilograms as inflated and unexplained. Applying an average sale price of Rs.61/- per kilogram, the Assessing Officer made an addition of Rs.44,18,718/- under section 68 of the Act as income from unexplained sources. Accordingly, the assessment was

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ITA No. 965/RJT/2026 Laljibhai Jadavjibhai Savalia completed under section 143(3) of the Act vide order dated 30.12.2019, determining the total assessed income at Rs.46,78,070/- as against the returned income of Rs.2,59,350/-. Agricultural income for rate purposes was determined at Rs.55,71,353/-, and penalty proceedings under section 270A of the Act were also initiated separately. 03. Aggrieved by the assessment order, the assessee preferred an appeal before the Ld. CIT(A). During the appellate proceedings, notices were issued to the assessee seeking written submissions and supporting documents. The notices were duly delivered to the email addresses available in the appeal memo and the ITR/PAN database. In response, the assessee uploaded written submissions, which were examined by the Ld. CIT(A) while disposing of the appeal and ultimately appeal of the assessee was dismissed. 04. Still, aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before the tribunal. 05. At the time of hearing, no one appeared on behalf of the assessee. However, written submissions were filed, wherein it was contended that the case of the assessee had not been properly appreciated by the authorities below. The assessee also relied upon certain judicial precedents and prayed that the addition made by the Assessing Officer be deleted. 06. On the other hand, the Ld. DR supported the orders of the authorities below. 07. We have heard the Ld. DR and perused the material available on record, including the written submissions filed by the assessee. We find that the assessee has relied upon certain judicial precedents without adequately explaining their applicability to the facts and circumstances of the present case. In the absence of proper assistance in this regard, we are unable to adjudicate the issue conclusively

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ITA No. 965/RJT/2026 Laljibhai Jadavjibhai Savalia on the basis of the material presently available on record. In the interest of justice and fair play, we deem it appropriate to restore the issue to the file of the Assessing Officer for fresh examination. The Assessing Officer is directed to consider the submissions and supporting evidence furnished by the assessee, examine the claim regarding agricultural land, cotton production and agricultural income, and decide the issue afresh in accordance with law after providing a reasonable opportunity of being heard to the assessee.

Order pronounced in the open court on this 23rd day of October, 2026.

Sd/- Sd/- [ Dr. Arjun Lal Saini ] [ Shri Sonjoy Sarma ] लेखा सद�य/Accountant Member �याियक सद�य/Judicial Member राजकोट/Rajkot िदनांक/ Date: 23/10/2026 Copy of the order forwarded to : 1. The assessee 2. The Respondent 3. CIT 4. The CIT(A) 5. DR, ITAT, Rajkot 6. Guard File By order //True Copy// Sr. Private Secretary ITAT, Rajkot

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