Income tax notice us 133(6) asking cash balance as on 08-11-2016 as a preventive measure to check black money conversion by Trusts and Societies.
It is learnt that Income Tax Department is issuing notices u/s 133(6) to various entities to furnish the details of cash balance as per their book of accounts as on 8th November, 2016. However this information is not confirmed yet and users are required to confirm this information at their end.
The suggestive language of the letter is as under:
To
…………………………….
Sub: Request for information u/s 133(6)
You may be aware that Government of India vide their Notification dated 8th November, 2016 have withdrawn the Legal Tender status of INR 500 and INR 1,000 denominations of banknotes issued by the Reserve Bank of India till 8th November, 2016. This is necessitated to tackle counterfeiting Indian banknotes, to effectively nullify black money hoarded in cash and curb funding of terrorism with fake notes.
2. It is clear that from midnight of 8th November, 2016 no one can indulge in cash transactions in this currency except depositing the same in Banks. These bank deposits shall also be part of in-depth scrutiny by the Department after 30th December, 2016. Therefore, you are advised not to deal with in above denominations by either accepting cash or paying in cash for any of your activities after 8th November, 2016.
3. In the backdrop of this demonetisation of old currency notes, the department is also aware that the pressure or temptation that may be there on Trusts and Societies, to accommodate others. As a preventive measures, you are hereby required to submit cash balance as per your books of accounts of all the institutions being run by you as on 31.03.2016 and as on close of 08.11.2016 to this office.
4. Same may be sent by way of postal letter, fax or on the email address mentioned above latest by 18.11.2016 (5 PM). No personal visit is required. This information is being called u/s 133(6) of the Income Tax Act, 1961, failure to comply within time may attract penal provisions under the Act.
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Related Updates:
Notices to explain cash deposits in bank by Income Tax Investigation Cell Siliguri >>
Note from the author:
Under section 133(6) Income Tax Department has the power to call information. However, in cases where no proceedings is pending, the power can be exercised only by the officers of the rank of Principal (Pr) Direcor/Director or PrCIT/CIT.
