TMI Blog2014 (1) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of section 68 of the Act cannot be invoked on various deposits/credits found recorded in the bank account of the assessee in the absence of books of the assessee maintained for that previous year - Provisions of section 68 of the Act cannot be invoked on the deposits made in the bank account of the assessee, the veracity of the additions made by the Assessing Officer on certain deposits by invoking the provisions of section 68 of the Act - the CIT(A) stated that the assessee has furnished reasonable and plausible explanations along with confirmation with regard to the different deposits – Decided against Revenue. - IT Appeal No. 398 (Luck.) of 2012 - - - Dated:- 25-4-2013 - Sunil Kumar Yadav AND J. SUDHAKAR REDDY, JJ. For the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply the decisions of Nanak Chandra Laxman Das (supra). 4. The CIT(A) has erred in law and on facts in deleting an amount of Rs.2,80,000/- out of addition of Rs.5,60,000/- made by Assessing Officer u/s 68 of the Income Tax Act, 1961. He failed to appreciate the fact that the assessee's explanation that this was the STRIDHAN received by his wife at the time of her marriage almost 25 years ago was unreasonable and was not supported by any evidence. 5. The CIT(A) has erred in law and on facts in deleting the addition made by Assessing Officer of Rs.1,32,600/- u/s 68 of the Income Tax Act, 1961. He failed in appreciate the fact that the assessee failed to provide any evidence of the so called opening capital available with him. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 68 of the Act for making additions of all the deposits in the bank at different dates after treating them to be unexplained cash credit. The ld. counsel for the assessee further contended that the provisions of section 68 of the Act can only be invoked 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 Income-tax Officer, satisfactory. In that eventuality, the said sum so credited may be charged to income-tax as the income of the assessee of that previous year. Since various deposits on different dates in the bank are not found to have been credited in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 68 of the Act can also be invoked on the credit entries found recorded in the bank account. Since this argument goes to the root of the case, we felt it necessary to adjudicate the same at the threshold. For reference, we extract the provisions of section 68 of the Act as under:- "68. 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." 7. The aforesaid provisions of section 68 of the Act can onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, that is, a book maintained by the assessee or under his instruction. The relevant observations of the Hon'ble Bombay High Court are extracted hereunder:- "In Baladin Ram v. CIT [1969] 71 ITR 427, it has been held by the Supreme Court that it is now well settled that the only possible way in which income from an undisclosed source can be assessed or reassessed is to make the assessment on the basis that the previous year for such an income would be the ordinary financial year. Even under the provisions embodied in s.68 of the said Act it is only when any amount is found credited in the books of the assessee for any previous year that the section will apply and the amount so credited may be charged to tax as the income of that previ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... additions made in the hands of the individual partners on the basis of the books of the partnership firm was deleted. 9. In the instant case, it is an undisputed fact that the assessee has not maintained any books of account and whatever credit entries are found by the Assessing Officer, it was from the bank accounts of the assessee in which deposits were made at different point of time. Even the passbook issued by the bank cannot be termed to be the book of the assessee as per the judgment of the Hon'ble Bombay High Court Bhaichand N. Gandhi (supra). Therefore, provisions of section 68 of the Act cannot be invoked on various deposits/credits found recorded in the bank account of the assessee in the absence of books of the assessee maint ..... X X X X Extracts X X X X X X X X Extracts X X X X
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