TMI Blog2013 (7) TMI 523X X X X Extracts X X X X X X X X Extracts X X X X ..... may be charged to income-tax as the income of the assessee of that previous year - Decided in favour of the Revenue. - ITA No.811/2009 - - - Dated:- 13-3-2013 - N Kumar and B Manohar, JJ. For the Appellant : Sri Manian, Adv. For the Respondent : Sri K V Aravind, Adv. JUDGEMENT:- The assessee has preferred this appeal challenging the order passed by the Tribunal dismissing her appeal negativing her contentions that Section 68 of the Income Tax Act, 1961 (for short hereinafter referred to as the 'Act') is not attracted to the facts of the case. 2. The assessee is the proprietrix of M/s.Krishna Hardware, Hospet, which was started from April, 1996. The capital investment was of Rs.50,000/-. A survey under Section 133A of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtent of 1,50,700/-. Before the Appellate Authority, the assessee tried to explain the difference by stating that the stock was utilized for paying the amount to the creditors, which plea was not accepted. Yet another plea, which was raised before the Appellate Authority, was that the assessee is a benami of her husband, who was doing the business in the name of his wife and addition cannot be made in the hands of the assessee. This plea was also rejected. Aggrieved by the order of rejection, the assessee preferred an appeal before the Tribunal. The Tribunal by its order dated 9th September, 2005 restored the addition of Rs.19,67,702/- to the file of Assessing Officer, which represented unexplained difference in account of creditors. Simila ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved by the said order, the assessee preferred an appeal to the Tribunal. Before the Tribunal, it was contended that Section 68 of the Act is applicable when there is a credit in the books of account. It has no application to a case of credit being shown for the supply received by the assessee and the payments were made to the suppliers for such supplies. The Assessing Officer could have exercised the power under Section 131 of the Act to summon and enforce the attendance of witness/creditors, which he has not done. The inability to verify the explanation offered by the Assessing Officer cannot be a ground for rejection of the contention of the assessee and therefore the impugned order passed requires to be set aside. The Tribunal re-appreci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said contentions, it is necessary to look at the Section 68 of the Act as under: Cash credits. 68. 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 there of 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. 7. What is the weight which should be attached to the heading (Cash credits) of Section 68 of the Act? A heading is to be regarded as giving the key to the interpretation of the clauses ranged under it, unless the wording is inconsistent with such interpretation. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e word used is either found credited or so credited, there is no indication in the Section that such a credit should be a cash credit. It may be a cash credit or it may be a credit representing the value of the supplies made by the suppliers on credit. The essence is that the credit should be shown in the account and that would satisfy the requirement of Section 68 of the Act. Once the credit so mentioned in the Section is found to be not supported by any acceptable evidence, then the sum so credited may be charged to income-tax as the income of the assessee of that previous year. This is precisely what can be done in the instant case. 9. In that view of the matter, the orders passed by the Authorities are legal, valid and call for no int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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