Cash held by assessee

Save Share

This query is : Resolved

Aashima (Querist)

19 March 2015 Assessee held cash in hand about Rs. 4lacs. He is not maintainig any books of account.
After some time,he deposited abovementioned sum in bank.A.O had made additions as income escaped.He didnt consider any confirmations and proofs.Please give advice in favour of Assessee by citing relevant section and case studies.

Amol S Joglekar

Amol S Joglekar (Expert)

19 March 2015 The opportunity of being heard must be given by the Assessing Officer before making any addition.
Write a letter to the concerned Assessing Officer under copy to his immediate superior.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

19 March 2015 yes correctly said by amol sir.

Aashima

Aashima (Querist)

19 March 2015 sir
i had gave letter and proper documentary evidence regarding it but he took credit side of bank statement and made additions even rs.100/-
the case is now placed before CIT(A) and we have to submit written submission but does not find proper case studies for citation.

Aashima

Aashima (Querist)

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

19 March 2015 if there is no citation then u must rely and stick to your facts and prove them if there is anything that he raises as querry think out before he finds a solution for same.

CA Rahul R Bang

CA Rahul R Bang (Expert)

19 March 2015 If the assssee is really not wrong then
Was he really kept cash at home instead if in bank
Are the proofs u said r full proof or arranged
See think from the point of view of a judge and decide . AO is also a learned.

Amol S Joglekar

Amol S Joglekar (Expert)

20 March 2015 Keeping a cash in hand of INR4 lakh in home is really very BOLD situation. The assessee not only carried the risk of THEFT but also risk of proving the genuineness to Income Tax Department. I am NOT sure what stand you have taken on behalf of your assessee. But be CAREFUL, would be my advice.
See, one can understand theatre owner, petrol bunk owner, race cource, milk seller etc to be cash rich to this extent.
Bur a person, NOT MAINTAINING BOOKS OF ACCOUNTS, having 4 lakh cash...and that too, you want to justify.... better be careful.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now