Check list for Cash deposited during demonetisation

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

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