Verification check list for assistance of AOs for OCM cases and framing of assessment in demonetisation related cases

Verification checklist for demonetisation cash deposits standardizes AO scrutiny to identify and quantify unexplained cash deposits for assessment.

Standardized verification checklist directs assessing officers to verify depositor information, classify taxpayer type, assess return filing history and income, compute ratio of cash deposits to gross total income, and identify nature of deposits to determine quantum of unaccounted deposits. For businesses it requires comparison with earlier sales profiles, review of stock records and internal controls, month wise analysis of cash sales and bank deposits across pre and peri demonetisation periods, computation of percentage increases, and follow up on atypical cash patterns; completed checklists must be uploaded in prescribed electronic format.