income tax summons

NOT NECCASARILY YOU MAY BE SERVED WITH A NOTICE, HOWEVER IF YOU HAVE PAID THROUGH CASH THEN THERE ARE CHANCES THAT THEY MAY SERVE YOU WITH A NOTICE TO EXPLAIN THE SAME.

Income Tax Summons u/s 131 are issued by assessing officer or Investigation officer during pendancy of enquiry or assessment. Summons may be issued to assessee or a third party witness to enforce attendance, record statement or production of  certain information.

Outright purchase of a car at the most may lead to selection of case for scrutiny if the purchase consideration is disproportionate to disclosed income of the person depending upon the criteria decided by CBDT. If you have explainable sources of purchase of car, you need not to worry.

i am paying through cheque only.

i understand that some people, even if they  have the money, take a loan and puchase a car and after six months, they close the loan. This is just to fool the income tax people. But what i want to ask is, Can income tax people be fooled so easily? They surely know about such a practice going on and must be monitoring car loans that are foreclosed.

Nobody is fooled by such tactics. The department selectively scrutinises the cases depending upon revenue potential and efforts involved.

Does It Dept take any action if summons u/s 131is not responded? What can it do?