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Regarding profit on agriculture

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Rajat Sharma

Accountant

436 Points Posted on 08 August 2020

Respected sir, I want to say that my case of income tax was fixed for scrutiny for the Asstt year 2017•18, in which I was shown the agriculture Income for Rs 1 Lac and I have deposited a sum of Rs
9.50 in my bank account on account of gross sale of agriculture products,but the Ld AO asked to me that the income tax department compute the agriculture Income as under Spouse. Gross sales of agriculture products is Rs 10 lac less expenses 70% I e 700000/_Net Agriculture income comes to rs 3.00 Lac i.e 30% of gross sale.Sir please guide me in which section the A O compute the said income.thanks

Replies (3)

Quick Summary

A taxpayer is seeking guidance on how the Assessing Officer (AO) calculated their agriculture income for the assessment year 2017-18. The AO determined the net agriculture income as 30% of gross sales (Rs 10 lac), after deducting 70% for expenses, resulting in Rs 3 lac. The taxpayer, who declared Rs 1 lac agriculture income and deposited Rs 9.50 lac from sales, wants to know the specific section under which the AO made this computation and is also asking for guidance on maintaining proper books of accounts.