Cash deposits notices from Income tax department on demonetization of currency notes-sending started. Notice from Investigation Wing Siliguri

Cash deposits notices from Income tax department on demonetization of currency notes-sending started. Notice from Investigation Wing Siliguri

It is learnt that Income Tax Department (Directorate of Investigation) apart from asking cash balances as on 08-11-2016, has started sending notices for inquiring cash deposits made. 

It is notable the other day CBDT Chairman has confirmed that Income Tax Department has already received all the data from the banks from January 2016 to till date.

Please note that the following notice has been reported in electronic media and before placing reliance on this, you are requested to confirm it from your own sources.

As per the copy of notice reported by the media, the notice issued by the Income Tax Department which is dated 18-11-2016, the concerned party has been asked to explain the cash deposits made on 13-11-2016 within 25-11-2016 i.e., within a short period of  less than two weeks.

However, the notice appears to have been issued in haste and its validity might be disputed as interestingly it does not bear the relevant section of the Income tax Act, 1961 under which it has been issued. Normally such notices can be issued by the Investigation Wing under section 131 or by the Assessing Officer under section 133(6) of the Income Tax Act, 1961 with proper authorisation. 

The illustrative text of the notice is as under:

Government of India
Ministry of Finance
Department of Revenue
Office of the Director of Income tax (Investigation)

To
………………………..

Sub: Enquiry of cash deposits made by you with State Bank of Sikkim from …/11/2016 to …/11/2016 – matter regarding

Please refer to above,

In the wake of demonetization of Rs. 1000/- and Rs. 500/- denomination currency notes, the Income tax Department under Ministry of Finance, Govt. of India is examining the source of cash deposits of above denomination with ………………….. (name of the bank). We have the information in possession that you /your concern/firm/company has deposited the following sum between …./11/2016 to …/11/2016 with …………….. (name of the bank) Branch:

                You are hereby requested to appear before me on or before ……………between ….p.m. to …….p.m. at my office at ……………………………..to explain the source of above deposits along with supporting documentary evidence. You may also produce the books of accounts along with bills/voucher or documents which would be useful to explain the above cash deposits. If you are assessed to Income Tax, then you shall also file copy of ITR of last 2 years.

(………………………….)
Director of Income Tax (Inv.)

Related Update: Sikkimese Connection and Demonetisation Scheme >>

Copy of Notice as reported in media: