In income tax assessment of a household lady, she has withdrawn 9 lacs in august and deposited in november. AO is saying that i dont believe that she redeposit same money, hence the money deposited in bank is unexplained.
Verbally My reply was that whether she can consume or spend 9 lacs on her household expenses with ordinary standard of living? Reply is no. She does not have any other source from where money shall come. What is use of making cash book or cash flow statement if our cash in hand shall not be admitted just for the reason that this cash in hand is 3-4 months old.
What should i do?
AO may assume in his style to get facts in an indirect manner, but he can not establish the same as per laid down procedure. Contact your chartered accountant and let her file a notarized affidavit with the same facts and get the statement on the public record. Do not assume things and have apprehensions..
