Issue of notice us 133(6) for cash deposits verification CBDT issues Instruction No. 4/2017

Issue of notice us 133(6) for cash deposits verification under Operation Clean Money. CBDT issues Instructions for procedure to be followed

Instruction No. 4/2017

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct taxes

North Block, New Delhi dated the 3rd of March, 2017

Subject: – Issue of notice under section 133(6) of the Income-tax Act, 1961 for verification of cash deposits under ‘Operation Clean Money-regd.-

Vide Instruction No. 3/2017 dated 21.02.2017, in file of even number, CBDT has issued a SOP to be followed by the Assessing Officer(s) for Online Verification of Cash Transactions pertaining to the demonetisation period. In continuation thereof, the Board hereby prescribes a Template, to be used for issue of notices under section 133(6) of the Income-tax Act, 1961 (‘Act’) in appropriate cases, for Online Verification of Cash Deposits. The format is enclosed herewith as Annexure.

2. Following issues may kindly be kept into consideration while issuing notices under section 133(6) of the Act, in applicable cases:

(i) Notice under section 133(6) of the Act is required to be issued, after obtaining prior approval of CIT/CIT/Pr. DIT/DIT as provided in the Act, in cases where the ‘person under verification’ fails to file Online response in a timely manner in spite of issue of reminder by the Assessing Officer. The approval would be taken Online once the facility in ITBA module gets operationalised;

(ii) Notice shall be generated through the ITD System only. Hence, no hand written/typed notice is required to be issued by the Assessing Officer in an individual case;

(iii) Response to notice under section 133(6) of the Act has to be furnished within the stipulated period by the ‘person under verification’ only through the Online mode;

(iv) It is re-iterated that verification under ‘Operation Clean Money’ is to be made through the Online Verification Portal only in accordance with SOP dated 02.2017;

(v) In case no response is furnished within the specified timeframe , Assessing Officer may form a view that ‘person under verification’ has no plausible explanation to offer regarding the cash deposits in his/her bank account(s) and consequentially, the case may be escalated as ‘Not-Acceptable’ for further action in accordance with the  procedure  prescribed  in the  SOP  of  CBDT  vide  Instruction  No. 3/2017 dated 21.02.2017.

3. This may be brought to the notice of all for necessary compliance .

4. Hindi version to follow .

(Rohit Garg)
Director (ITA.II), CBDT

Enclosure: as above

(F.No. 225/100/2017-ITA.II)

Download CBDT Instruction No. 4/2017 Click Here >>

• Receipts mentioning that it was towards corpus, donation assumed to be for corpus of trust
• Credit in partner’s capital account for book entry adjustments can not be added u/s 68
• Non-compliance of summons issued u/s 131 no ground to make addition u/s 68
• Assessee not obliged to demonstrate actual utilization of donation u/s 35(1)(ii)
• For Registration u/s 12AB, phrase “genuineness of activities” is interpreted liberally