investment in cash
Querist :
Anonymous
(Querist) 26 November 2010
This query is : Resolved
Husband running a kirana shop and wife engaged in private tuition work since last 10-15 years. Both do not have any bank account. Both do not file ITR becuase Below Taxable limit. Upto f.y. 06-07, they accumulated about 10 lacs in cash ( about 5 lacs each) and deposited with Govt. deptt. as licence fee Rs. 6.00 lacs and Security deposit Rs. 4.00 lacs in cash for obtaining a liquior licence for the FY 07-08. Money was deposited / paid in FY 06-07 but for the business of FY 07-08. IN the scrutiny assessment for AY 08-09, AO proposes to add the 10 lacs as income on the ground that no body can accumulate and keep such a huge cash balance in hand. Is the action of AO justified. Pl. provide case law if any in support of assessee.
Vishnu Promod Srivastava
(Expert) 27 November 2010
You will have to provide complete & full details of your income & savings yearwise to justify the savings of Rs.10 lacs to the AO ELSE AO IS RIGHT TO MAKE ADDITION OF YOUR INVESTMENT.
In case you need help you may contact me;
vishnu P. Srivastava Advocate
mobile 9415514541
E-mail vishnu@legalserviceindia.com
