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reply to AO against cash deposited into bank which is generated through sales and f&o trading

15 December 2018

I received a notice under section 148 and I filed a return and declared a business income of 150000 and speculative loss of rs 400000 from commodity market and equity market...now how I describe these income to AO in detailed format...kindly help

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5 Replies

nagaraj kadlaskar (79 Points)
Replied 15 December 2018

How much is the cash deposit. How much is your business income/sales. What is your business?

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Meenu Kmt (35 Points)
Replied 15 December 2018

it is a small clothing business or you can say retail trading of clothe and the total turnover was 1419000 out of these most of sale was in cash and the same was deposited into bank I.e.1340000 and profit earn from such business was 154550 which is below taxtable limit for ay 2011 12...apart from this assesse was dealing in commodity trading or equity trading a loss of rs400000 earn from that business.....now I have to disclosed these fact to AO in detailed format...can you suggest please how can I disclose or you have any format for this or any language you can suggest....I'll grateful for that ..it's urgent

nagaraj kadlaskar (79 Points)
Replied 15 December 2018

Submit the bank statements from which you have done commodity trade; bank account details of cash deposited, sales and purchase bills and invoice for verification to AO. This is the first step. U are saying sales is done mostly by cash, but see how much sales is by cash and by bank. Because you're in retail sales, what about receipts given against sales. This is just the beginning. Still more will be asked to prove that cash sales is cash deposited.