Regading deposit in bank

patel m. faruk yusuf (Querist) 14 December 2012 This query is : Resolved
My client deposit money in saving bank account has gone in excess of Rs. 10,00,000/- which he earned from LTCG from selling shares but he withdraw during the year at different point of time. whether ITO has power to ask regarding withdrawal in case, same has been selected on bases of AIR scrutiny cases? he did not disclose in his return shares purchased which he acquried in 1992. whether same can be ask? or ITO can use any rights?

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Raj Kumar Makkad (Expert) 14 December 2012
Such non-disclosure is definitely an offence and ITO has every power to deal this major deposit and withdrawals on different dates from the assessee and may impose penalty.

Guest (Expert) 15 December 2012
I endorse the opinion of Shri Raj Kumar Makkad.

prabhakar singh (Expert) 15 December 2012
If shares are held for more than 365 days and then sold then NO LONG or SHORT TERM CAPITAL GAIN TAX IS IMPOSED THEREON.

Your client must have had a DEMAT A/c and Shares must have been BOUGHT and SOLD by a Stock exchange broker who must also be a participatory of the DEPOSITORY where your clients share were lying to his demat a/c credit.
All payments to your client must have been made by broker in his saving bank a/c disclosed and attached with the depository.

Hence your client who has committed mistake in his earlier filed return should here now file all those paper details enumerated above to explain the nature and source of money he had in his saving bank a/c under reference.

Guest (Expert) 15 December 2012
If it is a scritiny case, he would be very late to submit revised returns. His returns may not find acceptance by the assessing officer till the process of scrutiny is over.

patel m. faruk yusuf (Querist) 15 December 2012
thanks to all but my question is whether bank pass book is considered in books of account? further question is AO can ask during scrutiny regarding withdrawal of amount? in which section?

Raj Kumar Makkad (Expert) 15 December 2012
Bank pass book is a vital evidence of books of accounts and AO shall definitely take its enteries in its consideration while deciding the matter.

R.V.RAO (Expert) 16 February 2014
UNDER SUB SEC 1 OF SEC 285BA,, “specified financial transaction” means any—
(a) transaction of purchase, sale or exchange of goods or property or right or interest in a property; or
(b) transaction for rendering any service; or
(c) transaction under a works contract; or
(d) transaction by way of an investment made or an expenditure incurred; or
(e) transaction for taking or accepting any loan or deposit,
which may be prescribed :
UNDER IT Rules., form 61A needs to be submitted with details of specified fin.transactions,.
Recently CBDT prescribed penalty of Rs100 per day for not furnishing the details of SFT(spec.fin.transac.)under sec 285BA.
The same penalty will go up to Rs 500 per day if the info.is not given to the assessing officer even after asking for the same.
non disclosure of share transactions is also an offence because source of income during the fin.year not disclosed.
my suggestion is file revised return with AIR disclosing full transactions,which gets you and your client, credibility and peace of mind