Income Tax matters about confirmation

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If you've received a payment via bank transfer for goods sold, but the other party is not confirming the transaction to the Income Tax authorities, you can provide your invoice and bank statement as evidence. Explain that the payment is for a genuine sale, include all relevant details like invoice number and date, and state that applicable taxes have been paid. This documentary proof should satisfy the tax authorities, even if the other party is being uncooperative.

ARUN GUPTA

ARUN GUPTA (Querist)

09 August 2021 We received a payment from a party from other persons bank account. Now we have a Income Tax scrutiny and party is not confirming Accounts . What should we do in these circumstances . What should we reply to Income Tax Authorities. Please advise?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 August 2021 Please give more details so that I am able to give suitable reply.
1 What for the payment received.
2 When the person is not confirming the payment.

If payment is received towards supply of goods or services your invoice could be a evidence of payment.

ARUN GUPTA

ARUN GUPTA (Querist)

09 August 2021 Payment received for Goods sold .

ARUN GUPTA

ARUN GUPTA (Querist)

09 August 2021 When Income Tax send him notice to give accounts transaction details. The party Simply hide our one sale bill and also hide the Payments.

ARUN GUPTA

ARUN GUPTA (Querist)

09 August 2021 When Income Tax send him notice to give accounts transaction details. The party Simply hide our one sale bill and also hide the Payments.

ARUN GUPTA

ARUN GUPTA (Querist)

09 August 2021 What steps should we take in these circumstances?

ARUN GUPTA

ARUN GUPTA (Querist)

09 August 2021 Please reply what steps need to be taken now?

ARUN GUPTA

ARUN GUPTA (Querist)

10 August 2021 Pl advise us How to reply to authorities.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 August 2021 You reply as, the payment is received against supply of goods, give invoice number and date. Date of receipt of amount in bank account.
Invoice copy and bank statement enclosed.
Say applicable taxes on the sale paid to government. It's not known why he is hiding our transaction.
We confirm that the receipt of payment is a genuine one for sale of goods which is received through banking channel.

ARUN GUPTA

ARUN GUPTA (Querist)

10 August 2021 Will this reply solve the issues from Income Tax end? Will Income Tax agree ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 August 2021 It's a genuine transaction, you have concrete documentory evidence.
In such a case income tax will agree.

ARUN GUPTA

ARUN GUPTA (Querist)

10 August 2021 This is genuine transaction but party on other side is hiding the transaction facts which is unnecessary creating doubts to Income Tax Authorities.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 August 2021 Why he is hiding the transaction is it to evade tax.
In such a case based on your reply and documentary evidence you will be relieved and other person will be subject to scrutiny.

ARUN GUPTA

ARUN GUPTA (Querist)

10 August 2021 Thanks a lot for your Excellent solution and befitting reply to authorities.

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