Income tax appeal issue

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This query is : Resolved

TARIQUE RIZVI (Querist)

19 December 2018 The issue is related with Ay 2011-12 ( Year Ending March 2011 ). Actually the assessee maintained that time a saving bank account into which during the whole assessment year a sum of Rs 40 lacs was deposited in cash by the assessee.The source of cash was through cash sale. The assessee used to purchase by cheque but used to sell in cash as the assessee was basically a retailer. The case was selected for scrutiny on the basis of cash deposit. The assessee filed IT Return u/s 148 for the Ay 2011-12 u/s 44-AD. The income was computed @ 8% of Rs 40 lacs u/s 44-Ad. Nett Profit then arrived as at Rs. 3,10,914 as upon which Tax Liability arrived as at Rs 15,545 as upon which Intt arrived as at Rs 18090. The assessee paid a total sum of Rs 33,634. But the ITO passed the assessment order by adding Rs 40 lacs.

Now what is the best solution of this problem ? What to do now in such circumstances ?

Z (Expert)

19 December 2018 Prima facie, it does not appears that entire 40Lakhs should have been considered as an income. Kindly send a copy of the notice(s) and the order for analysis.

If you are certain that the action of AO is not correct, then I think you should prefer an appeal.
prateek63@yahoo.co.in

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