Income tax scrutiny u/s 142 (1)

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varun gupta (Querist)

17 April 2013 My sister got scrutiny notice for FY 2010-11. In that year she had salary income as main source of income. However, she had bank account in joint name with her husband. Now, as checking the files/documents following discrepancies noticed:

1. There has been cash deposit of around 20 lac in saving account during the year but that's mainly due to her husband's business which has all cash transactions.
2. One property was purchased and sold during the year on which STCG amounting Rs. 4.5 lac was arisen but same not shown in ITR filed.

Now, ITO has asked for Bank statement with narrations for all entries and also asked for Personal Balance sheet/Statement of Affairs, Profit/loss A/c etc which however were never prepared for the year as that was also not required. So, i have following queries:
1. Whether STCG be shown as income for year or not! If yes, how much tax/interest /penalty will be imposed by ITO?
2. How to prove these cash deposits into account?
3. ITO also asked to file affi-davit providing detail of all bank accounts maintained. Now sister has one other account in joint name with her husband but in that account all transactions are related to her husband business only. SO, is it required to show this account also in affi-davit or not complusory.
Dear Experts, Kindly guide with your valuable suggestions.

Guest

Guest (Expert)

17 April 2013 1.)STCG will be @ 30 % on Rs. 4.50 lacs.
ito ll charge with interest and 100% penalty for concealment of income.

2.) Cant be explained through writing.

3. u must show all the accounts in ur affidavit. if u r thinking to conceal any of a/c to show in affidavit, it ll be hell 4 u.

in which ward and state ur sister is assessed.

varun gupta

varun gupta (Querist)

17 April 2013 a) So, while providing documents,statement of affairs, profit/loss, whether this property sale purchase be shown now or what?
b) STCG will be taxable as per normal tax slab rates or it will be flat 30%?
c) Can penalty be waived off?
d) How to prove these cash transactions now?

Assessment is in new delhi at ward 25.

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