Scrutiny Assessment! Undisclosed Cash Deposited!

This query is : Resolved

CA Parag Jani (Querist)
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13 June 2011 Dear Experts

One of my client's case is under Scrutiny Assessment & has got the notice for the same. Now, in one of the points for the notice, the ITO has asked for explanation regarding Cash Deposited upto an amount of 20lacs to Bank A/cs. On my inquiry, the client told me that he has NOT disclosed the same in his return of income for that year. His Turnover of trading business (as per return) has been declared by him of Rs.6.5lacs only. So is there any way i can justify & explain the cash deposited?

Plz advise. ON URGENT BASIS.

Ramalinga H.B

Ramalinga H.B (Expert)
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16 June 2011 Ask your client from where he got the money to deposit into bank account. He would you received from his customers and depoisted into bank account but declared in return for lesser value. Talk to your client to know the actual fact and then decide.