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2018 (8) TMI 1748 - AT - Income TaxAddition u/s 68 - unexplained deposits in the bank account (in the name of the appellant and his wife) - non mainataning of books of accounts - whether bank Pass Book maintained by the bank cannot be regarded as a book of the assessee for the purposes of section 68? - Held that:- AO in the remand proceedings had issued summons to the persons and “their affidavit were filed, they were cross examined and their statement were recorded on oath” and the same were forwarded to the CIT(A) who has failed to take cognizance of the same. The assessee before us, had filed said evidences i.e. affidavit of the persons, their statement which were recorded at page 20 to 39 of the paper book - Totality of the evidences available with the assessee, statements of the persons recorded and their cross examination in which no disparity has been found or detected, then explanation offered by the assessee merits to be accepted in toto. Accordingly, we hold that there is no merit in making addition on this count in the hands of the assessee. the addition under section 68 of the Act has been made in the hands of the assessee because of cash deposit in the bank account i.e. savings account maintained by the assessee. The Hon'ble Bombay High Court in the case of CIT Vs. Bhaichand Gandhi [1982 (2) TMI 28 - BOMBAY HIGH COURT] has approved the proposition that a bank Pass Book maintained by the bank cannot be regarded as a book of the assessee for the purposes of section 68 - where the assessee was not maintaining any books of account and section 68 had been invoked by the Assessing Officer only on the basis of the bank pass book ; the invoking of section 68 has to fail because the bank Pass Book or bank statement cannot be construed to be a book maintained by the assessee for any previous year as understood for the purposes of section 68 - See SMT. MANASI MAHENDRA PITKAR AND SHRI. MAHENDRA CHINTAMAN PITKAR VERSUS THE INCOME TAX OFFICER 1 (2) , THANE 1 (2). [2016 (9) TMI 605 - ITAT MUMBAI] - decided in favour of assessee.
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