22 December 2011
Dear Sir, My friend is a franchisee for an reputed company's product and his income is only by way of commission from that company.When filing income tax return he declared all commission income properly. And he helped some dealers purchases through his bank transfers.But assessing officer asked a question that your declared turnover in the It returns and Bank deposits are varied.How can he explain this truth because his income portion is commission only.We are expecting a remedy for that issue.
22 December 2011
Furnish the names of the dealer for whom he entered into bank transaction. Also furnish confirmation from the dealers or the suppliers as can be availed. The assessee has to explain the reasons of variations properly by explaining each of such transactions.
23 December 2011
The assessee needs to match the credits in the bank account with the relevant debits in the bank account. Rest is as explained by Mr. Bafna
29 December 2011
Dear Sir, Thanks for your valuable and suggestible reply.As per your guidelines we finished the case.Once again our sincere thanks to Mr.Paras Bafna and Mr.CA. Abhishek Rana.
CAclubindia
