Question ID :
40549
collection of agent
DEAR ALL,
FACTS : A PERSON IS CARRYING ON A CENTRE FROM WHERE HE COLLECTED CASH AND PAID TO WBSEDCL FOR PAYMENT OF ELECTRICITY BILLS. IN FY 2017-18 TOTAL DEPOSIT IN BANK WAS AROUND 60 LACS.BUT ENTIRE AMOUNT PAID FOR PAYMENT OF ELECTRICITY BILLS. ITO HAS ADDED ENTIRE AMOUNT U/S 69.
QUERY : PLEASE PROVIDE ANY CASE LAW TO GO FOR APPEAL .
Posted by
SUDIP KUMAR MUKHOPADHYAY
on
Jan 22, 2020
Filed Under
DIRECT TAXES
can you tell us how you treated the cash deposits in your books of accounts
Posted by
CA Shrawan Suthar on
Jan 24, 2020
Answer ID :
80371
WE TREATED CASH RECEIVED FROM CUSTOMER AS ADVANCE RECEIVED WHICH AGAIN PAID TO PRINCIPAL VIA INTERNET BANKING WITHIN A DAY OR TWO AS PER AGREEMENT BETWEEN PRINCIPAL AND AGENT.
Posted by
SUDIP KUMAR MUKHOPADHYAY on
Jan 24, 2020
Answer ID :
80377
I am of the view that s.69 is not applicable since you have the source for the deposits made. The nature of the money is also explained. you can very successfully challenge the demand before CIT(A). Even otherwise there are so many challenges open to you against section 69 assessment and the application of draconic rates u/s 115BBE.
siva208@yahoo.com
Posted by
SIVADAS CHETTOOR on
Jan 29, 2020