One of my client has purchased a land and paid the initial amount by cheque of Rs. 6 lacs. Later on, the deal got cancelled and the seller is willing to return the entire amount by cash of Rs. 6 lacs.
My query is can my client deposit this cash into his bank account and adjust this money against the payment he has made by cheque.
12 March 2024
if tomorrow income tax authorities the source of this cash, will the seller accept that he returned the money in cash? if not, then your trouble will be to explain why this amount should not be treated as unexplained income.
CAclubindia
