HIGHER VALUE TRANSACTION SFT-04

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An individual has received an Income Tax notice regarding a variation between their AIS and filed returns, specifically concerning higher value cash transactions. The client, a farmer with substantial agricultural income, received over £33 lakh in cash from small traders who lack bank accounts. While the tax return declared this as agricultural income based on bank statements, confirmation of its agricultural nature is lacking. The query seeks guidance on how to justify these cash deposits if questioned by Income Tax officers, including the need for account statements, revenue records, and sales details with bills.

raghavendra b

raghavendra b (Querist)

22 March 2025 DEAR SIR,

FOR THE OF FINANCIAL YEAR 2022-2023 RECEIVED A E-MAIL FROM INCOME TAX DEPARTMENT THERE IS VARIATION IN AIS AND INCOME TAX RETURNS FILED REPORTED HIGHER VALUE TRANSACTIONS. ASSESSEE IS AN FARMER HE OWNED NEARLY MORE THAN 50 EKAR AGRI LAND AND EARN NEARLY 30 TO 40 LAKHS AGRICULTURE INCOME. ALL PAYMENTS RECEIVED FROM SMALL TRADERS THEY EVEN DO NOT HAVE BANK ACCOUNT SO MY CLIENT RECEIVED 33,15,880/- CASH DEPOSITS FROM DISTANCE CUSTOMERS.
INCOME TAX RETURNS FILED BASED ON THE BANK STATEMENT BUT ENTIRELY DECLARED UNDER AS AN AGRICULTURAL INCOME SO THERE IS NO CONFIRMATION REGARDING CASH DEPOSITS IS AN AGRICULTURAL INCOME.

FEED BACK ALSO FILED THROUGH COMPLIANCE PORTAL ' THE INFORMATION IS CORRECT'.
MY CLIENT SAYING ENTIRE AMOUNT IS COMPLETELY AGRICULTURAL INCOME PLEASE SEND FEED BACK IS INFORMATION CORRECT.

WHAT IS NEXT IF THE ITO OFFICERS ASK DOCUMENTS REGARDING CASH DEPOSITS, MY CLIENT KEEP THE BILLS AMOUNT RECEIVED FROM THE DISTANCE CUSTOMERS.

PLEASE GUIDE ME

REGARDS

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 March 2025 Prepare account statement of total agri produce justifying it with revenue records and the details of the sells to each trader with its bills. If asked details you need to justify the cash receipts from each traders along with dates.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

30 September 2025 Good luck....

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