Unexplained Cash Credit Addition of ₹1.77 Cr: ITAT Remands Matter for Verification of Agricultural Income and Submitted Evidence

The article reports an ITAT (Ahmedabad Bench) decision in an income-tax appeal concerning an addition of ₹1.77,16,980 made as unexplained cash credit under Section 68 for AY 2020–21. The assessee had declared substantial agricultural income (₹1.21 crore) and faced limited scrutiny due to large cash deposits appearing inconsistent with income. The AO made the addition and the CIT(A) confirmed it. On appeal, ITAT observed that both authorities had not properly considered evidence—receipts and materials proving agricultural operations—and remanded the case to AO for fresh verification and opportunity of hearing. The order stresses due consideration of evidence and reassessment of cash-credit explanations rather than sustaining additions without enquiry. The appeal was partly allowed for statistical purposes, reaffirming procedural fairness and evidentiary scrutiny under Sec. 68.