Undisclosed income

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dinkar (Querist)
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28 February 2014 hallo all of you one of my friend deposited 45 lacs cash in his saving a/c for dealing to purchase landin 2009.sources of money is from differant relative,, friends,, finance etc.all sources are by way of cash.due to some reason deal was cancelled and he returned the money from whom he was collected.now AO demanded tax approx 9 lacs.how can we resolve this.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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28 February 2014 well undisclosed income is undisclosed income. Question is whether what your friend received was undisclosed income or unexplained cash credits?

According to me it is case of cash credits. what you need to do is to explain the whole chain of transactions alongwith identity of people who gave the money. if you are unable to establish the identity of the these individuals, AO has every right to tax the whole of such credits as income.

dinkar

dinkar (Querist)
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04 March 2014 Thanks for reply Nikhil
you are right but he taken cash from many people who are all farmers AO can also raise question that all these people are dummy even though they are not dummy

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