ITO had treat as income all cash deposited in bank. so i have to go for appeal ? i was given explanation as i have to increase creditworthiness with bank therefore i was deposit cash and withdrawn the same. than also he was added as income and raised the demand. any solution for that ?
You should have hire a C.A. before goining to ITO as it is a serious issue.
Basically, Maximum Balance Deposited, i.e. Peak Level is to be calculated and evidence of source of such Cash is to be prepared and deposited.
The issue of ITO is, you have deposited the cash but not shown the source of such cash i.e. from where you have received the cash.
You have to proove the source of Cash which was once deposited in Bank. Whether you have received it from some of your friend or relative or its your accomulated cash of previous years, or you have earned such in this year.
Because of lack of proper justification and pleading before ITO, he have assumed that you have earned all such income this year and you have not shown it in Income Tax Return and not paid tax on it.
25 August 2012
Dear Yogesh, As per my view you will have to disclose all the source from which u have deposited the cash and also u will have to satisfy to ITO Regarding it.
CAclubindia
