18 June 2009
Q1. Assessing office ask me to give the details regarding advances taken by the company. My client is share broker company and it take advance from all the their cleint who wants to sale/purchase of shares through stock exchange. The advance amount is very high and the details of all cleint is very big. Should i give the all details or not for the purpose of assessment. There is any law regarding against of advance execpt 2(22)e of the I.T. Act.
19 June 2009
Hi Bharti, The AO can demand details of all the advances. There is no law against acceptance of advances except sec. 269SS which prohibits acceptance of deposits/advances exceeding Rs. 20,000/- in cash. As the quantum of advances is very big therefore request the AO to accept details of some big advances only. Generally during the assessment proceeding , AO asks for details of some big advances only .
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