Recd cash advance from party

sharma (Self Employed) (74 Points)

03 August 2011  

Dear Sir,

My Client Problem is as follows :

I am having a Travel Agency Business.I generally receive cash advance from party for Group Tour booking both Tour/Tickets.I deposit the same in my bank account.Sometimes advance is refunded due to cancellation of program by the party.I withdraw cash from bank refund the same.

The basic question is if I receive advance in cash from the Group Head in excess of Rs. 20000/- per head and then I return to the same person on cancellation of tour.Does I have to give the names of all the group people.Since Some Hotel Passengers give us advance it is not practical to have all the names of the group passengers.

Now I have received a notice from Income Tax where it asks that you have deposited cash in excess f Rs. 10lacs in your bank account.Actually it is advance from party and refund to party in cash.

How should I explain the same and Will Income Tax Officer get Convinced ?

Pls advise

Thanks

Sharma