Verification of Agriculture Income of more than ₹ 1 Crore

LETTER F.NO.DGIT(S)/DIT(S)-3/AST/PIL MATTER/AGRICULTURAL INCOME/97/2015-16

DATED 10-3-2016

Kindly refer to subject matter.

2. It has been noticed that several assesses have declared income from agriculture of more than ₹ 1 Crore in the income tax return filed for earlier years especially from AYs. 2011-12 to 2013-14.

3. In this regard, there is a PIL matter pending before Hon’ble Patna High Court wherein concerns have been raised that a few assesses may be engaged in routing their unaccounted/illegal money in the garb of agricultural income thereby not only claiming exemptions on such income but also engaged in the money laundering activities.

4. Since agricultural income is only used for rate purposes, it was noticed that in a few such high value cases, taxpayers may have inadvertenlly made data entry errors while filling up the fields for agricultural income.

5. Therefore, it is requested that the assessing officers may be directed to

(i)     Verify whether the taxpayer may have made a data entry error while filling up the return.

(ii)    Wherever scrutiny assessment is completed, AO may provide feedback based on assessment records.

(iii)   In cases where proceedings u/s 143(3) are pending, assessing officers may be informed to thoroughly verify the claims.

6.  The list of cases having agriculture income more than ₹ 1 Crore alongwith jurisdictional details is placed at itaxnet at the following path :

Resources → Downloads → Systems → Verification of Agriculture-Income

You are requested to kindly send a status report in this regard after verification as mentioned above. This feedback may be urgently provided to this Directorate before March 20^th, 2016 so that we can report the correct figures of claims of agricultural income to the Hon’ble Patna High Court.

7. This issues with the approval of Pr. DGIT(S).

RCC wise list of cases