Audit

Raghu ponnala (Querist) 02 September 2013 This query is : Resolved
Sir

I got a letter from income tax depart regarding the recipts and payment for the year 2009-10. I have submited all the paper work and my source of funds etc...

Now my question is i have deposit of 27lakhs cash deposit. which i have deposited in the bank. (Explaination. I have give a check of 22,lakhs on 08 and check of 5 lakhs on 09.as a loan x he had given me back cash 27 laksh which i have deposited.) now what document i need to submit to income tax officer...???

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A V Vishal (Expert) 02 September 2013
The person to whom the loan was given must confirm the fact that he repaid the loan in cash.

Sudhir Kumar, Advocate (Expert) 02 September 2013
better you meet a CA.

prabhakar singh (Expert) 02 September 2013
I think even if he confirms return Tax Authorities are not going to take notice,else they would ask him to explain how he has accounted this cash in his books of a/c?

Am i correct Mr.Vishal?I was improving very
fast in the area of tax law because of you but often you now do not visit.why?

Guest (Expert) 02 September 2013
Both, you and the cash giver can be in trouble, if the cash is not found accounted for in the books of the person who gave you such a huge amount of 27 lakhs in cash or if you fail to prove that he gave you all the said amount in cash.