PM Narendra Modi’s has announced demonetisation of old Rs 1,000 and Rs 500 currency on 8th November 2016 and after that there was lot of ways people started trying to covert their Black Money into White and one such way was using Bank account of others.  Government is watching such development closely and to curb this hass issued a notification asking banks to report all cash deposit between 9 Nov to 30 Dec in AIR report on or before 31st January 2016.

Government has also issued a Press Release Yesterday and warned to take Strict Action against Tax Evaders using other persons’ Bank Accounts to convert their Black Money into New Denomination Notes and against Person(s) who allows His Or Her Bank Account to be misused for this purpose can be Prosecuted for Abetment under Income Tax Act;

In above background Yesterday there was a Income Tax notice, which was circulating on Whatsapp  and on other social media channels regarding deposit of Cash in bank account by an Assessee namely M/s. Sitaram Enterprises from Sikkim.

Notice was in respect of cash deposit of Rs. mere 4,51,000/- in current account maintained by M/s. Sitaram Enterprises with State Bank of Sikkim from November 12 – 14 ,  which is far below the limit of Rs. 12.50 Lakh in current for AIR reporting notified by Government vide Notification No. 104/2016 dated 15.11.2016.

In his notice dated November 18 – signed by Norbu Bhutia, deputy director of Income Tax (Investigation) at Siliguri unit – the depositor has been asked to appear before the deputy director on (or before) November 25 to explain the source of deposits, along with supporting documentary evidence.

Although notice is been duly issued but the officer has failed to mention that under which section he has issued the notice or called the assessee and details and what lead to his suspicion.
Some people are also discussing the authenticity of the Notice which in our opinion should not have been the case as officer himself has confirmed to a leading newspaper regarding the authenticity of the same.
I am not sure issuing notices for small deposits to taxpayers Is this the start of Tax Terrorism under BJP regime  or it is it the step in right direction to curb the black money.
Copy of notice issued is as follows:-

FUNNY REPLY TO ABOVE NOTICE CIRCULATING ON WHATSAPP ( Reply is just for fun and is neither by Taxpayer and nor the actual reply)

Image Sources- WHatsapp

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25 responses to “IT dept starts issuing notices for cash deposits on or after 09/11/2016”

  1. SURYA KARADA says:

    after applying for 12 a AND 80g to the office, after how many months we will get the same certificate from the office ?

  2. RAKESH NEGI says:


  3. CA Kedar Gokhale says:

    Some scrupulous persons are taking advantage f current situation to flees money from people. One of my clients received a phone call that Income Tax Department has planned a search on his factory next day at 2.00 pm and asked him to be present there to attend the search.

    Very foolish. From when the department has started to inform assesses in advance that they are being raided.

  4. SALAGAME says:

    I have a query. let us say if ‘A’ and ‘B’ are unknown to each other. if A puts some money to B’s a/c without informing B, how can B will be prosecuted ?. In the bank, while A is crediting money to B , while filling up SB challan, there is no requirement of B’s approval.. hence how can anybody question B ? Also, in most of the Bank’s SB challan doesn’t ask / validate ‘A’ ‘s background and reason for crediting the money to B’s account. Hence how can IT dept make poorfellow ‘B’ responsible ? … Can anyone explain ?

    • Nitesh Sharma says:

      In real life, nobody does this type of transactions. If it happened then mark that money as your income and pay Tax @75% and the rest 25% will be your Income.

      Congrats you made an income of 25% of the amount deposited. No need to worry.

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