For the FY 2009-10, purchase from dealers declared as Hawala purchases, as such no MVAT credit is allowed by the Sales Tax Department.
Now Sales Department furnished list of all such dealers who have purchased goods under Hawala to the Income Tax Department.
IT Department issued notice u/s 148 to all such dealers to file revised return for escaped income.
In this regard, my query is, while filing revised ITR, such escaped income amount be shown as Other Income or to reduce from purchases for relevant Assessment year. Counter effect in Balance sheet weather to show as cash in hand or stock in trade / Other current Asset or any other way.
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