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2016 (2) TMI 911 - AT - Income TaxAddition u/s 68 - Held that:- Section 68 talks of any sum found credited in the books of an assessee maintained for any previous year. As per this section, if the assessee offers no explanation, the section would apply. But this explanation has to be with regard to any sum found credited in the books. This is amply clear from the use of the expression "about the nature and source thereof" ("thereof" being the operative word). Then, in case the explanation offered by the assessee is not found by the Assessing Officer to be satisfactory, the section can be invoked. This explanation, obviously, harks back to any sum found credited in the books. The words "the sum so credited" again relate to any sum found credited in the books "so credited", here being the pregnant expression. Thus, a plain reading of the section establishes that it operates only where books are maintained by an assessee and a sum is found credited therein. Now, in the present case, it remains undisputed that the assessee has not maintained any books during the year. Thus, the provisions of section 68 of the Act are not at all attracted and they have been wrongly applied by the authorities below. - Decided in favour of assessee.
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