1.12 Crore Income Tax Notice for Credit Card usage !

[sunit123]

If you spend money in credit card and someone pays behalf of you to the credit card why would you receive notice ?, the money has gone to a credit card which Is a loan account, ideally you are supposed to pay if you have money in your bank account or how you got the money in your account, (savings) but an loan account you cant literally save it where is the point of IT? Let's say you have add on cards and you spend on add on card and then Bill is generated to primary card and spend shows on primary card that means primary card holder is responsible for spends? What Logic is this? IT never works like that, IT has powers upto your saving account not on your loan accounts specifically for credit cards

Due to post paid nature of payment, CC is considered as advance loan but balance you owe to bank is a liability in your balance sheet. Liabilities are financial obligations that individuals or businesses owe to others and it is treated as debt. Therefore, CC creates debt, which is a liability that appears on a balance sheet, showing the amount of money you are obligated to repay

Any liability or debt is the responsibility of individuals or businesses not of the person who is clearing it.