How to without considered income declared in it returns

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2011 my client was cash purchases a vacant site & House rs. 18,00,00/- through settlement case (illegal). he was paid less amount rs. 6.00lakhs, stamp paper values 18.00 lkhs.
his source of income last 2 year yeara as per IT returns 1.70 & 2.10 lakhs.(no books of accounts only other source of income of mechanic income declared.)
he having huge real estate commission income(not recorded income).
how to incorporate the above site in books of accounts)out source of income
his bank account only cash deposit above 20.0 lakhs.
he can declared income 6.00lk 2010.11 financial year.
how to handle with department?

U S Sharma

U S Sharma (Expert)
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07 November 2011 cash deposit of 20 Lacs means he will get selected for 143(3), for deposit in cash over 10 Lacs as per bank AIR

share some more facts, viz his education, place of living, family background, age, present occupation, past occupation, family members, (better if file details of family members are available, to make gift/loan to assessee)

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Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2011 we declared 22.00 lakhs is commissions as a turnovers and income declared 6.00 lakhs is correct.
under u/s 44AD total cash deposits as a gross receipts and declared 28% as a presumptive income.
is correct.
in feature we will take 143(3) time we are give clarification total cash deposits is declared as a commission turnover is accepted department.

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U S Sharma

U S Sharma (Expert)
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07 November 2011 receipts above 20000 will be get scurtinized with name and address of commission paying agency, if you can provide cross reference with their books then no need to worry.

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Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2011 sir

1. how to treated cash deposits treated in our books of accounts.
2. our family members wife & father it assesses, they have no excess funds. so we are write sundry creditors given cash.
give better way for our safty.
thanking you sir your response

U S Sharma

U S Sharma (Expert)
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08 November 2011 as the return is already filed, not much in your hands, keep fingers crossed, that your return does not get trapped under scurtiny, otherwise whole the amount deposited would be accounted as your income.

before making such transactions always get in touch with a CA of your area, who would be glad to assist you in safe form to keep the transactions under ambit of laws and rules,

for property dealings, if advised properly, i belive that you could have been saved with this 6Lacs income too, by making a family tree and ancesterol misc items in possession, which got sold prior to such transactions for money needed, but cash transactions can not save the situation.