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Bhavya Arora (Querist)

20 August 2012 I need help regarding an issue in which my client has deposited cash in saving bank around 21 lakhs in the entire year. Out of which 7 lakh is the fund transfer in anothers name on d same day(no idea whether it will be counted in cash deposit or no)
and all the cash deposits are from business....now i need help on the point that is it on the safe side by showing the gross receipts of rs. 20 lakhs around and the profit worth more than 8%(around 20%)as it is a no account case...so what are the chances of getting the case scrutinize under AIR(coz cash deposit in saving account is more than ten lakhs)

Urgent help
Thanx in advance

thanx in advance

Amol S Joglekar

Amol S Joglekar (Expert)

20 August 2012 fund transfer per se is not cash deposit. From your query, it seems that fund transfer is also in the nature of cash deposit.

Bhavya Arora

Bhavya Arora (Querist)

20 August 2012 Actaully it is the cash deposit of 7lakhs credi and on the same day fund transfer in some name of same amount..will it be counted as a business income by the tax authorities on the basisi of AIR

Bhavya Arora

Bhavya Arora (Querist)

20 August 2012 ?cash deposit 7lakhs credit
And on the same day fund transfer in some persons name debit

Amol S Joglekar

Amol S Joglekar (Expert)

20 August 2012 cash deposit as such can never be taxed as INCOME by tax authority. If it is unexplained credit , then it is a different matter.

Bhavya Arora

Bhavya Arora (Querist)

20 August 2012 If i will show gross receipts(as it is a no accounts case) more than what is deposited(cash plus bank) then that means i m showing every deposit as my business part(which is true) then in that case also department will raise query about the source of cash deposit(coz in actual it is very difficult to proove dis)

Amol S Joglekar

Amol S Joglekar (Expert)

20 August 2012 Let us come to the ORIGINAL question. The probabilty is very LOW of SCRUTINY.

Bhavya Arora

Bhavya Arora (Querist)

20 August 2012 Okey....n what if i ll file the return u/s 44AD coz in dat case authorities cannot question about the source. is it more appropriate or the simple no accounts procedure is good???

Amol S Joglekar

Amol S Joglekar (Expert)

20 August 2012 44AD can not be taken as a BOON for not asking the books of accounts. Income Tax department can very well ask for the SOURCE of funds. So, i think 'no account case' and '44AD' are on same RISK

Bhavya Arora

Bhavya Arora (Querist)

20 August 2012 Okey....well thanks for time and consideration....picture is more clear than before..

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