Dear All
Transactions pertaining to partnership firm are effected in individual (non partner) bank account viz., depositing of firm cash into bank account of individual and from thereon transfering the balance to matls supplier.
Now the individual has received notice for cash deposits exceeding Rs.10.00 in SB A/c in a financial year.
What is the course of action to be adopted ?
Explanation will have to be given as to why the cash deposits in the partner's bank account is not an income of the partner. Routing the payments to suppliers via personal a/c of partners is not a common practice, and therefore, it will not be easy to convince the AO.
Fytomax Nutrition Private Limited
Aurangabad
CA Inter
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Abic and Mani Chartered Accountants
Kottayam
B.Com
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S.B.G. & CO. CHARTERED ACCOUNTANTS
New Delhi
CA Inter
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CCI
Pro
CAclubindia
