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TMI Blog2015 (10) TMI 2436X X X X Extracts X X X X X X X X Extracts X X X X ..... the total income of the assessee u/s 68 of the Act, treating these cash creditors as simple entry-provider to the assessee as such entries are appearing in the books of account of the assessee." 3.1 During the course of appellate proceedings before the ld. CIT(A), the assessee reiterated its earlier position and submitted additional evidences in the form of confirmation letters, which were admitted by the ld CIT(A). Further the ld CIT(A) has held that the issue can be decided even without considering these additional evidences. Since all the aforesaid cash credits were admittedly old and balances therein reflected only the brought forwarded balances, the same cannot be added as undisclosed income in this year in accordance with the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red by section 3(1)(a) but the assessee has been given an option by law under section 3(1)(b) to make up his accounts on the basis of a twelve-month period starting from any odd day of the year and in that case so far as the assessee is concerned it will be his previous year. We see no justification for giving a different connotation to the term previous year for the undisclosed income than the previous year which has been opted by the assessee and accepted by the department as the period for the purposes of computing his income-tax under section 68 of the Act. We feel fortified in our conclusion when we recall that under section 68 when any sum is found credited in the books of an assessee maintained for any previous year and his explanati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctory the value of the investments shall be deemed to be the income of the assessee for the financial year preceding the assessment year. This distinction is purposeful. Section 68 accepts the entry as representing the correct financial position of the assessee with regard to the quantum of money and the date of its acquisition but when its source is unexplained or not adequately explained then for the purposes of income it should be treated as the income of the assessee's previous year. Section 69, however, deals with investments which are at large and neither recorded in any account book nor is it possible to precisely locate their date of acquisition. In such a situation law permits the department to deem that it accrued in the prece ..... X X X X Extracts X X X X X X X X Extracts X X X X
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