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2016 (9) TMI 605 - AT - Income TaxUnexplained cash credit u/s 68 - cash deposits made in the joint bank account of assessee husband and wife - bank Pass Book is not an account book maintained by the assessee so as to fall within the ambit of section 68 - Held that:- In the present case the addition has been made by the income tax authorities by treating the cash deposits in the bank account as an unexplained cash credit within the meaning of section 68 of the Act. The legal point raised by the assessee is to the effect that the bank Pass Book is not an account book maintained by the assessee so as to fall within the ambit of section 68 of the Act. Under section 68 of the Act, it is only when an amount is found credited in the account books of the assessee for any previous year that the deeming provisions of section 68 of the Act would apply in the circumstances mentioned therein. Notably, section 68 of the Act would come into play only in a situation “where any sum is found credited in the books of an assessee ”. The Hon'ble Bombay High Court in the case of Shri 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 of the Act . Factually speaking, in the present case, assessee is not maintaining any books of account and section 68 of the Act has been invoked by the Assessing Officer only on the basis of the bank Pass Book. The invoking of section 68 of the Act has to fail because as per the judgment of the Hon'ble Bombay High Court in the case of Shri Bhaichand Gandhi(supra), 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 of the Act. - Decided in favour of assessee
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