CBDT Directive Reg Verification Of Genuineness Of Agricultural Income Shown In ROI For AY 2011-12 to 2013-14

The CBDT has issued a letter dated 10.03.2016 in which it is pointed out that several assesses have declared income from agriculture of more than Rs. 1 Crore in the income tax return filed for earlier years especially from AY 2011-12 to 2013-14. The CBDT has stated that 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. It is stated that since agricultural income is only used for rate purposes, it was noticed that in a few such high value cases, taxpayers may have inadvertently made data entry errors while filling up the fields for agricultural income. The CBDT has accordingly directed AOs to verify the genuineness of the alleged agricultural income