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2024 (2) TMI 550 - JHARKHAND HIGH COURTAddition u/s 68 - unexplained balance in corporation bank - as argued pass book cannot be treated as books of account - HELD THAT:- It is true that pass book itself cannot be treated as books of accounts, but in the instant case as appears from the order that the assesssee has submitted balance-sheet, profit and loss account, computation of income etc. and certainly the assessee also maintained his own books of account in his ledger; as such the findings given by Tribunal that in the peculiar facts and circumstances the claim of the assessee is not sustainable, prima facie, is acceptable to this Court. It is not a case where the assessee has proved the source of income or identity/creditworthiness/genuineness of transaction and before us they have taken only one ground that since the pass book cannot be treated as books of account; as such the addition made by the Assessing Officer under section 68 of the Act is not sustainable is not sustainable. Effect of Mere mentioning of wrong section/provision - Only for not mentioning the correct provision in the assessment order, an amount which may be an income under the provisions of the Act cannot be allowed to go untaxed. Admittedly, in the Income Tax Act under Section 69 of the Act there is a provision of undisclosed investment and certainly an amount deposited in the Bank will come under the purview of investment. Otherwise also no prejudice has been caused to the petitioner as petitioner failed to show any prejudice even when a wrong provision has been mentioned in the assessment order. It is a settled legal principle that if a source of power can be traced, the mere mentioning of wrong section/provision will not invalidate the order. Even assuming the contention of the petitioner that passbook cannot be treated as part of Books of Accounts to be true; admittedly, the source of income in the case of both the assesses has not been proved; inasmuch as, both the assesses have failed to prove the identity/creditworthiness/genuineness of the creditors, who have given cash loan as claimed by them . Assessee has submitted the balance-sheet, profit and loss account, Bank account and computation of income and other details before the AO. Thus, definitely those amounts have escaped the taxation and as stated hereinabove only for not mentioning the correct provision in the assessment order an amount which may be an income under any of the provisions of the Act; cannot be allowed to go untaxed. No error has been committed by the Tax Authorities and/or the Tribunal in adding the amount not disclosed to the total income of the respective Assessee. Decided in favour of revenue.
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