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2024 (1) TMI 849 - AT - Income TaxUnexplained cash credit u/s 68 r.w.s. 115BBE - assessee not maintaining books of accounts - HELD THAT:- As evident from the material available before us that the assessee has not maintained any books of accounts, neither she was required to maintain books of accounts as prescribed under the provisions of I.T. Act. Since her source of income are only salary, house property and other sources. It is also a fact that the addition on account of unexplained cash credit has been made u/s 68 r.w.s. 115BBE by the Ld. AO, which has been further affirmed by the Ld. CIT(A) without observing that the addition should not have been made u/s 68. Contention of the revenue based on judgment of Smt. Gloria Eugenia Rynjah Banerji [2023 (8) TMI 1418 - ITAT DELHI] cannot be subscribed to as following the judicial discipline we are bound to follow the ratio of law and analogy drawn by H Bhaichand N. Gandhi [1982 (2) TMI 28 - BOMBAY HIGH COURT] which has not been considered while decision was offered by the tribunal. Thus wherein the addition u/s 68 was proposed on the basis of entries in the Bank Passbook, which cannot be treated as books of accounts of the assessee, therefore, the contention of the Ld. AR that addition u/s 68 cannot be made when no books of accounts are maintained by the assessee is worth concurring which is well supported by the analogy and well settled principle of law drawn by Hon’ble Bombay HC in the case of Bhaichand N. Gandhi (supra). Thus addition made u/s 68 in case of the assessee, who is not maintaining books of accounts is bad in law and thus, is liable to be vacated. Decided in favour of assessee.
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