TMI Blog2012 (7) TMI 493X X X X Extracts X X X X X X X X Extracts X X X X ..... h credits, but so indicated in the books of accounts of the assessee - as three authorities below have found that the explanation offered by the assessee to claim that the amount was genuine cash credit was not acceptable find scope for reversing this finding in an appeal under section 260-A - The possibility that the amount would also attract the provisions of section 69 of the Act is not a ground for excluding the applicability of section 68 - against assessee. - ITA No.90 of 2011 - - - Dated:- 13-6-2012 - D V Shylendra Kumar and B Manohar, JJ. For Appellants: V Chandrashekar, Adv. Sri A Shankar, Adv. For Respondent: Sri E I Sanmathi, Adv. JUDGEMENT This appeal by the assessee under section 260-A of the Income Tax Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing aggrieved had appealed to the Commissioner of Income Tax [Appeals] - II, but without success and a further appeal to the Tribunal not having made much headway, is in appeal before this court. 4. Appearing on behalf of the appellant, submission of Sri. V. Chandrashekar, learned counsel is that the assessee, in fact, had got confirmation from all the creditors acknowledging that they had lent the amount to the assessee; that when once the creditors had affirmed credit to the assessee, in terms of the law declared by the Supreme Court in the case of COMMISSIONER OF INCOME TAX [CENTRAL], CALCUTTA v. DAULAT RAM RAWATMULL reported in 1973 [87] ITR 349 , cash credit entries had to be accepted as genuine and that such view is also affirmed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cash credits:- Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year. 8. Section 68 of the Act enables the authorities to assess to tax any cash credit entries found in the books of accounts of the assessee in the previous year where such entries are made if the assessee either does not offer any explanation or explanation offered is not to the satisfaction of the Assessing Authority. 9. It is in the course of examination ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scope for reversing this finding in an appeal under section 260-A of the Act and even otherwise, we find that the view taken by the authorities below is plausible view in the circumstances and not resulting in illegality or contrary to the statutory provisions. 14. The argument that the assessing authority should have proceeded under section 69 of the Act in respect of fixed deposits in the bank is not very germane as while it may so constitute as unexplained investment in terms of section 69 of the Act and that question could be examined independently, that will not in any way alter the legal position and the operation of section 68 of the Act in respect of cash credits which are not explained to the satisfaction of the assessing authori ..... X X X X Extracts X X X X X X X X Extracts X X X X
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