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:
- 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 |
|
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 |
|
Select Response |
Non- Business Case
| # | Particulars | Response | Remarks |
| 2.1 | Return filing Compliance |
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| 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 | ||
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| 2.6 | Assessment of explanation provided by the taxpayer |
|
Select Response |
| 2.7 | Quantum of Unaccounted Deposits as determined by the AO. |
Business Case
| # | Particulars | Response | Remarks |
| 3.1 | Regularity of Business |
|
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 |
|
Select Response |
| 3.4 | Result of Evaluation of Stock Register |
|
Select Response |
| 3.5 | Result of Evaluation of Internal Controls |
|
Select Response |
| 3.6 | Result of Evaluation of books of account and Internal Controls |
|
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.
