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2018 (4) TMI 1866 - ITAT MUMBAIAddition u/s 68 - unexplained cash deposits - HELD THAT:- A credit in the 'bank account' of an assessee cannot be construed as a credit in the ‘books’ of the assessee, for the very reason that the bank account cannot be held to be the 'books' of the assessee. Though, it remains as a matter of fact that the 'bank account' of an assessee is the account of the assessee with the bank, or in other words the account of the assessee in the books of the bank, but the same in no way can be held to be the ‘books’ of the assessee. A thoughtful consideration to the scope and gamut of the aforesaid statutory provision, viz. Sec. 68, and are of the considered view that an addition made in respect of a cash deposit in the 'bank account' of an assessee, in the absence of the same found credited in the 'books’ of the assessee maintained for the previous year, cannot be brought to tax by invoking the provisions of Section 68. As stands gathered from the records, the addition made by the A.O is in respect of the cash deposits in the bank accounts of the assessee, and not in any ‘books’ of the assessee for the year under consideration. In the backdrop of the aforesaid settled position of law, the addition made by the A.O in respect of the cash deposits of ₹ 8,51,400/- in the bank accounts of the assessee by invoking Section 68 has to fail, for the very reason that as per the judgment in the case of of CIT Vs. Bhaichand N. Gandhi [1982 (2) TMI 28 - BOMBAY HIGH COURT] a bank pass book or bank statement cannot be considered to be a 'book' maintained by the assessee for any previous year for the purpose of Section 68 of the Act. Therefore, on this count itself the impugned addition deserves to be deleted. As quashed the addition on the ground that no such addition could have been validly made u/s 68 of the Act, therefore, we refrain from adverting to the grounds wherein the assessee had assailed on merits the additions sustained by the CIT(A).
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