The relation between bank deposit with turnover

[TAPAN PAL]

Sir

In the assessment of a proprietary concern, The A.O determined turnover on the basis total bank deposit and the demand the tax. Though I submit my Cash Book and the A.O checked all bank transaction from bank statements and never found any shortfall in cash balance and the A.O did not reject also my books of accounts.

How shall i establish this before CIT(Appeal).

Thanks

[Ganeshan Kalyani]

Bank statement also forms a part of document to arrive at turnover. You can summarize your transaction with remarks as regard source of income and convince the CIT.

AI Summary

Bank deposits as proxy for turnover: reconcile and explain each significant deposit to challenge assessment. A proprietor whose turnover was assessed by aggregating total bank deposits but who produced cash books and bank statements should prepare a coherent, itemised reconciliation of bank credits with books of account, cross referenced to supporting vouchers and accompanied by concise remarks identifying the source of each significant deposit, so as to address an assessment founded on bank deposits.