Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 1111 - AT - Income TaxUnexplained cash credit u/s 68 - income of the assessee is accepted u/s. 44AD - Scope of the term "Books of account of the assessee" vis-a-vis Bank Statement - HELD THAT:- The provisions of section 68 cannot be applied. Asking the assessee to prove to the satisfaction of the Assessing Officer, the expenditure to the extent of 92% of gross receipts, would also defeat the purpose of presumptive taxation as provided under section 44AD of the Act or other such provision. Since the scheme of presumptive taxation has been formed in order to avoid the long drawn process of assessment in cases of small traders or in cases of those businesses where the incomes are almost of static quantum of all the businesses. Applying the propositions of law laid down in NAND LAL POPLI VERSUS THE D.C.I.T., CHANDIGARH [2016 (6) TMI 883 - ITAT CHANDIGARH] to the facts of the case on hand, delete the addition in question. Even otherwise, in the present case, the Assessing Officer found certain deposits as unexplained in the bank account of the assessee with ICICI Bank, Dharwad branch at ₹ 9.16 lakh. In my opinion, when moneys are deposited in the bank account, the relationship that is constituted between the banker and the customer is one of the debtor and creditor and not of trustee and beneficiary. Applying this principle, the bank statements supplied by the bank to its constituent is only a copy of the constituent’s account in the books maintained by the bank. It is not as if the bank statements are maintained by the bank as the agent of the constituent, nor can it be said that the pass book is maintained by the bank under the instructions of the constituent. Therefore, the bank statements supplied by the bank to the assessee in the present case could not be regarded as a book of the assessee, nor a book maintained by the assessee or under his instructions. As such, addition u/s 68 of the Act of the amount entered only in the bank statements was not justified -See BHAICHAND H. GANDHI [1982 (2) TMI 28 - BOMBAY HIGH COURT] Thus the amount found credited in the bank account of the assessee cannot be made an addition u/s 68 of the Act - Decided in favour of assessee.
|