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2017 (4) TMI 1421 - AT - Income TaxAddition u/s 68 on account of cash deposited in the bank account - assessee explained before the AO that the cash belongs to her husband Sri Surendra Kumar out of his explained source and further submitted that her husband has received this amount from his father Sri Govindappa - Held that:- Since all the parties are related to each other therefore, the authorities below doubted the genuineness of the transaction. Even otherwise, when the accounts in which this cash was found deposited is in the joint name of assessee and Mr. Surendra Kumar then explanation of the assessee that this amount belongs to her husband cannot be brushed aside without proper inquiry. Thus in view of the fact that the creditor though relative of the assessee accepted the transaction of advance of ₹ 12 lakhs then in the absence of conducting a proper enquiry of disproving the claim of the assessee the said explanation cannot be rejected on technical reasons. Further there is no dispute that this is a transaction of deposit in the bank therefore the issue of applicability of Section 68 arises in view of the various decisions of this Tribunal as well as the decision of Hon'ble Bombay High Court in the case of CIT Vs. Bhaichand N Gandhi [1982 (2) TMI 28 - BOMBAY HIGH COURT]. - Decided in favour of assessee.
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