Transaction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2014 Dear Experts,
Kindly advice me the case given below with IT Rules & Section :
If any body doing business of resale and doing huge transaction in his bank account which is current account, a transferring huge amount to his parties and depositing cash in regular basis, and the turn over of the bank is about 60 Lakhs and he has show just Rs.25 Lakhs as Gross Receipts in is IT Return for the A.y.2012-2013,for this Income Tax Department has issued a notice u/s 142(1) for inquiry and asked him The Bank Statement and the evidence to probe the genuineness of the Transaction, therefore, the A.R. appeared before the Asseesing officer and tried to adduce him that these transactions are just to impress Bank for Cash Credit Loan,
My question is
1) What are the Powers of ITO/Assessing Officer in the case, if the Asseesee Representative did not appear before the ITO/Asseesing officer?
2) Is there any guideline or ruling of Hon'able Supreme Court that these types of transaction can be allowed.
3) Can ITO/Assessing officer compel the Asseessee to produce Books of Account or other documents if the asseesse did not reply his notice u/s 143(2).
4) Can ITO/Asseesing Officer demand the Bank Statement of the Asseessee from Bank ?
5) If Asseessee could not probe the genuineness of transaction what can ITO do?
Please give the reply by providing Sections and Rules.
Thank You.

Rupesh Jain

Rupesh Jain (Expert)
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29 May 2014 1.ito demand the documents and you account record and base of return you filed.
2.if assesse not attend the notice then penalty u/s 272 @ 10000 per default.
3.ito/AO can demand statement from bank.
4.if you fail to prove the transaction then he make the addition in your income and demand tax and penalty and intt. on demand amount.

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