Controversial case Please reply

This query is : Resolved

darshit (Querist)
Follow

13 December 2010 My client's case is selected under AIR.My client's bank account shows cash of Rs. 1700000 which is is more than Rs. 1000000.

Now,the deputy commissioner has asked for it's source.All the above amount deposited i.e., rs. 1700000 is black money.

Please advice me what reply should I draft?

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

13 December 2010 Declare the income and tell the ITO that the above is being declared to avoid dispute with the department and to buy piece of mind and no penalty be levied.

Or alternatively you could show that some business was being carried out but there were losses and hence the same was not shown and the above are receipts of the business deposited in banks.

So a business could be shown.

Also one question how the black money was received? Whether the assessee is in the business of giving bogus loans or cheque discounting? Then peak credit theory could also be adopted.