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2023 (8) TMI 77 - AT - Income TaxUnexplained cash credits u/s 68 - assessee is not maintaining the books of accounts - HELD THAT:- As noted in case of Smt. Shanta Devi [1987 (10) TMI 26 - PUNJAB AND HARYANA HIGH COURT] has categorically mentioned that the assessee when does not maintain any books of accounts the same cannot be considered and cannot be taken into account as unexplained cash credits u/s 68. In the present assessee’s case the assessee is not maintaining the books of accounts as this is an admitted position. Thus, merely on the bank statement cannot attract provision of Section 68 - Thus, additional ground taken by the assessee is justifiable and is allowed. Besides this on merit as well the treatment given by the assessee has been clearly set out in respect of loans and the payments of the interest to the depositors. Assessee has given confirmations as well as the genuineness of the transaction. Merely not filing the income tax return cannot debar the genuine transactions of the assessee in respect of this loans which have been repeated and in subsequent year the Revenue has accepted the same. The creditworthiness depends upon the act of both the parties and therefore, on merit as well the addition does not sustain - Appeal of the assessee is allowed.
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