Excess cash withdrawals
munish
(Querist) 04 August 2012
This query is : Resolved
That i am doing trading of paint. That during the year 10-11 some time I have already cash in books like 9 lac and further withdrawals from bank 6 lac closing balance 15 lac and also not utilized total cash for 15 to 20 days. Now my question is that can assessing authority ( ITO ) can create problem for me. Can he disallow interest paid to bank or treat excess cash as investment or create any other problem. Suggest me the right way.
Thanks in advance
A V Vishal
(Expert) 04 August 2012
Your transactions will raise doubts in mind of any prudent man unless you have a satisfactory reply to convince regarding the withdrawal, any ways your auditor is the best person to help you out so consult him.
