12 July 2013
The assessing officer has made additions to the total income on account of undisclosed cash credit. The AO has added the amount deposited without giving set off of amount withdrawn. However, as per the bank statement there are deposits as well as withdrawals from the account.
The department has gathered the bank transaction details though AIR. The assesse is a salaried employee. Whether we can take peak credit as our defense. As The assesse is not maintaining books of accounts whether Sec 68 (undisclosed cash credit) can be applied by the dept. Kindly guide. We have taken the ground that the assesse has given loan to his friend which was repaid by them into his account. Thus, there is only circulation of fund. But we have no concrete evidence about the said matter.
12 July 2013
YES THEY CAN INVOKE SEC 68. U NEED TO HAVE FULL PROF SUPOTINGS WHICH ARE VALID AND CONVINCING FOR EACH DEPOSITS AND WITHDRAWALS IN CASE IF THEY SCURTINISED UR BANK A/C TRANSACTION WISE.
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