Evidence of farmers 7/12

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2013 Dear Experts,

A case of an owner of ginning and pressing is selected for scrutiny.he has purchased cotton of Rs.10 crore in cash from farmers direct and through APMC. IT officer is damanding evidence (7/12 of Farm) of all the farmers.It is not possible to collect evidence from all farmers.
Can IT officer demand evidence in this way?
is there any case in favour of us?
What is solution for this criticle situation?
Kindly guide us
Very Urgent
Thanking You

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

14 November 2013 Duty has been casted upon the assessee to prove the genuineness of the transactions.
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Provide the names and addresses of the farmers with the details of transactions entered into. Your obligation will be discharged at the first instance
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Further, Also collect Form 7/12 , which are easily available.
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In some cases 7/12 may not be in the name of the farmers or may not be available.
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Where the farmer does not own agriculture land but carried on Agri. activity on the land of others- in such cases you may just explain the point and do not submit the Forms.
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