22 December 2011
Dear Sir, My friend is a franchisee for an reputed company product and his income is only by way of commission from that company.When filing income tax return he declared all commission income properly. And he helped some dealers purchases through his bank transfers.But assessing officer asked a question that your declared turnover in the It return and Bank deposits are varied.How can he explain this truth because his income portion is commission only.We are expecting a remedy for that issue.
As if i could understand, I feel your friend is under scrutiny or depositing more then Rs 10 Lacs in his one Saving Bank Account.
You are therefore requested to check with your Assessing officer or with himself have to scrutinise his bank account and should confirm that no more then 10 lacs was deposited in the account in the said financial year.
If so he have to show from where he have recieved such payments, which was deposited to his bank account.
As a suggestion, you must contact a tax lawyer, and have to track each deposits and source of such deposits
For Further queries you may contact me @ ca.raghavgarg@gmail.com
CAclubindia
