Income tax notice

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2015 Hello all,

One of my friend was interested to go abroad, for this purpose an agent ask him to retain healthy funds in his bank statement so that his visa can easily been executed.

in the mean time agent get deposited Rs. 15 lacs from his own account to my friends account, but as soon as visa get cancelled agent withdrawn the money from my client accounts for which he already had a signed self cheque with him.

Now income tax department issued a demand notice to my friends asking him to pay income tax on amount deposited by agent. meanwhile agent denied all the transactions. My friend denied that these all transactions had been done by the agent but department is not in the mood to listen anything after various question answer had already been there.

now the question is:-
Is there any way for my friend to avoid all the proceedings whereas he has nowhere retain any income by all these transactions.

kindly do revert.
Many thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 March 2015 If it is cheque deposit and cheque withdrawal you can prove it is paid by the agent. Get a certificate from bankers with cheque No. from which account it came and gone.
IT dept will normally question cash deposits in banks.

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2015 sorry i forget to mention that amount was deposited in cash and also withdrawn in cash.