STRICTLY FOR DEPARTMENTAL USE

F.No.225/145/2019-ITA-II
Government of India
Ministry of Finance
Department of Revenue
Central Board of
Direct Tax

North Block, New Delhi,
Dated, The 9th August , 2019

To
All Principal Chief-Commissioners of Income-Tax/
All Principal Director Generals of Income-Tax

Sir/Madam,

Subject: – Verification check list for assistance of AOs for OCM cases and framing of assessment in demonetisation related cases-reg

Reference:-

1. Instruction No. 3/2017 dated 21.02.2017 issued vide F.No. 225/100/2017ITA-II.

2. Instruction No. 4/2017 dated 03.03.2017 issued vide F.No. 225/100/2017ITA-II.

3. SOP dated 15.11.2018 issued vide F.No. 225/363/2017/ITA-II.

4. SOP dated 03.03.2019 issued vide F.No. 225/363/2017/ITA-II.

5. Internal Guidance Note dated 13.06.2019 issued vide F.No.225/145/2019/ITA-II.

Kindly refer to the above

2. In this regard, I am directed to state that the Board has earlier issued above referred SOPs/Instruction/Internal Guidance Note regarding handling of cases related to demonetisation. In continuation of the same, a Verification Checklist-cash deposits is enclosed herewith for providing assistance to AOs for verification of cash deposits and framing of assessment in demonetisation related

3. This checklist-cash deposits may he filled up in all the cases and uploaded in system in the suitable format (to be prescribed by system directorate) so that the deviant cases can be taken up for further study.

Yours faithfully,

End: As above.

Copy to:

  1. The Pr. DGIT(Systems) with a request to enable this verification checklist in OCM cases in ITBA.

General

# Particulars Response Remarks
1.1 Feedback on correctness of information
  • Information was correct
  • Information was partly correct
  • Information was wrong
Select Response
1.2 Cash Deposit between 9th Nov to 31st Dec 2016 If taxpayer disputes the amount, mention correct amount after verification from bank
1.3 Taxpayer Type
  • Non-Business Case
  • Business Case
Select Response

Non- Business Case

# Particulars Response Remarks
2.1 Return filing Compliance
  • First time return filer
  • Return filed first time one year before
  • Return filed first time two years before
  • Returns filed for last 3 year
  • None of the above
2.2 Total Income of the taxpayer in FY 2016-17
2.3 Gross Total Income (including exempt income) of the taxpayer in FY 2016-17
2.4 % of Cash Deposit to Gross Total Income (including exempt income) Value = (1.2/2.3)
2.5 Nature of Deposit
  • Out of loan received
  • Out of repayment of loan
  • Gift
  • Sale or advance for sale of land or any other capital asset
  • Cash received for services rendered
  • Other exempt income
  • Cash in hand
  • Any other
2.6 Assessment of explanation provided by the taxpayer
  • Explanation was acceptable
  • Explanation was partially acceptable
  • Explanation was not acceptable
Select Response
2.7 Quantum of Unaccounted Deposits as determined by the AO.

Business Case

# Particulars Response Remarks
3.1 Regularity of Business
  • First time business return filer
  • Return filed first time one year before
  • Return filed first time two years before
  • Business Returns filed for last 3 year
  • None of the above
Select Response
3.2 Nature of Business Select from standard list of Nature of Business
Overall Assessment
3.3 Whether Cash Deposits appear

in line with earlier Sales Profile

  • Very High
  • High
  • In line
  • Low
  • Very Low
Select Response
3.4 Result of Evaluation of Stock Register
  • Stock register is not maintained
  • Stock register is maintained in adhoc manner
  • Stock register is integral part of accounting software
Select Response
3.5 Result of Evaluation of Internal Controls
  • Books of account are not maintained
  • It is possible to back date
    transactions
  • It is not possible to back date transactions
Select Response
3.6 Result of Evaluation of books of account and Internal Controls
  • Books of account are properly maintainedΟ Books of account are being rejected
Select Response
3.7 Quantum of Unaccounted Deposits as determined by the AO

4. Cash Deposits in Bank

4.1. (a) Total cash deposit in Bank in F.Y. 2015-16
(b) Total cash deposit in Bank from 01.04.2015 to 08.11.2015
(c) Total cash deposit in Bank from 09.11.2015 to 31.12.2015
4.2. (a) Total cash deposit in Bank in F.Y. 2016-17
(b) Total cash deposit in Bank from 01.04.2016 to 08.11.2016
(c) Total cash deposit in Bark from 09.11.2016 to 31.12.2016
4.3. (a) Percentage increase between 4.2(a) and 4.1(a)
(b) Percentage increase between 4.2(b) and 4.1(b)
(c) Percentage increase between 4.2(c) and 4.1(c)

5. Cash Sales

5.1 (a) Total cash sales in F.Y. 2015-2016
(b) Total cash sales from 01.04.2015 to 08.11.2015
5.2 (a) Total cash sales in F.Y. 2016-2017
(b) Total cash sales from 01,04.2016 to 08.11.2016
5.3 (a) Percentage increase between 5.2(a) and 5.1(a)
(b) Percentage increase between 5.2(b) and 5.1(b)

6. Analysis of month wise cash sales and cash deposits from 01.04.2015 to 08.11.2015

Month wise Op. cash in hand Cash sales Cash deposited in Bank Cash withdrawal from the bank Closing cash on hand
April, 2015
May, 2015
June, 2015
July, 2015
August, 2015
September, 2015
October, 2015
November till 08.11.2015

7. Analysis of month wise cash sales and cash deposits from 01.04.2016 to 08.11.2016

Month wise Op. cash in hand Cash sales Cash deposited in Bank Cash withdrawal from the bank Closing cash on hand
April, 2016
May, 2016
June, 2016
July, 2016
August, 2016
September, 2016
October, 2016
November till 08.112016

Verification Checklist- Cash Deposit

S.No. Further verification Remarks (Yes/No)
8 Whether reason for mounting cash in hand in F.Y. 2016-2017 till 08.11.2016 has been obtained
9 Whether small part of the cash is deposited in or withdrawn from the Bank despite having huge cash in hand.
10 Whether the quarterly VAT Return is revised in the post-demonetisation period.
11 Whether the reason for the revision has been obtained.
12 Whether there are large changes in the purchase and sales figures between the original and the revised VAT returns.
13 Whether the changes are for genuine reasons.

Assessment Procedure

S.No. Further verification Remarks (Yes/No)
14 i Whether the books of accounts have been rejected
15 Whether the additions have been made u/s 68 to 69D. please mention the section.
16 Whether tax is calculated as per section 115BBE
17 Whether penalty u/s 271AAC has been levied

Download Check list for Cash deposited during demonetisation

Source- Whatsapp.

Disclaimer- Please verify the Authenticity of the above before relying on the same.

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