TMI Blog2011 (5) TMI 1007X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee, the same was correctly quashed by the CIT(A). Coming to the merits, undisputedly, the addition was based only on some entries in the bank account of the assessee. The provisions of sec 68 are, therefore, not attracted where the assessee does not maintain books of account. It is correct that since no books of account are maintained in the ordinary course of the business of the assessee, in the absence of any corroborative evidence to support action u/s 68, no such addition is tenable. - I.T.A. No.2256/Del./2009 - - - Dated:- 13-5-2011 - SHRI G.E. VEERABHADRAPPA, HON BLE VICE PRESIDENT AND SHRI A.D. JAIN, JUDICIAL MEMBER For the Assessee : Shri A.K. Jha, FCA For the Revenue : Smt. Anusha Khurana,Sr.DR OR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of income from the assessee. However, on 16.11.07, the assessee furnished a return of income, declaring ₹ 48,111. As per the computation of income, the assessee declared the source of income as consultancy at ₹ 48,000 and bank interest of ₹ 118. The AO, in the re-assessment proceedings, asked the assessee to produce Shri Narender Chadha, Shri Surinder Kumar Sachdev, Shri S.S. Khandelwal and director of M.V. Flora Hut Pvt. Ltd. The assessee expressed his inability to do so. The AO concluded that the assessee had adopted a method of colourable device to channelise his undisclosed income and that it was the duty of the assessee to establish the identity and capacity of the parties and the genuineness of the amount of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used the assessment order and the assessment records. It is found that the contention of the Ld.AR that he attended the proceedings on 29.11.2007 is correct as per the records, because as per page 13 of the paper book, the letter dated 29.11.2007 from the Ld.AR s counsel to the AO shows the compliance to the queries form points 1 to 6 submitted to the AO. This is also evident from page 21 of the paper book which is the notice u/s 142(1) dated 30.11.2007 enclosing the letter dated 30.11.2007 which was served upon Ld.AR of the assessee on 30.11.2007 itself. As far as the crossverification/ examination, of Shri Ashok Lakhan Pal, the complainant, is concerned, the assessee had requested to cross examine him regarding the facts and allegations i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A). 9. Coming to the merits of the case, undisputedly, the addition of ₹ 913000 was based only on some entries in the bank account of the assessee. The assessee was found not to have maintained any books of account. Now, as correctly observed by the CIT(A), the passbook/bank statement supplied by the bank to the assessee does not amount to a book of account of the assessee. It being only a copy of customers account in the books maintained by the bank, a bank does not act as an agent of its customer. It also cannot be said that banker maintains a passbook under the instructions of the account holder. The provisions of section 68 of the Act are, therefore, not attracted where the assessee does not maintain books of account. The C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. 4. ₹ 60000 and ₹ 40000 on 21/10/99 and 25/10/99 and ₹ 200000 on 26/10/99, ₹ 60000 and ₹ 40000 was received from Shri Niggar and ₹ 200000 was received from N.J. Patel through Sh. Narender Chadha copy of confirmation was also filed before AO. Even during the course of enquiry by I.T.OP.(A.D.I.), he had taken statement of Sh. Narender Chadha who confirmed the above facts. During the course of assessment, counsel of the assessee required AO for obtaining copy of statement form ADI office vide letter dated 10.12.2007. Photocopy is enclosed for your reference. 11. In view of the above, finding no merit therein, the grievance sought to be raised by the department by way of the grounds taken, the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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