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2016 (9) TMI 605 - ITAT MUMBAI

2016 (9) TMI 605 - ITAT MUMBAI - TMI - Unexplained cash credit u/s 68 - cash deposits made in the joint bank account of assessee husband and wife - bank Pass Book is not an account book maintained by the assessee so as to fall within the ambit of section 68 - Held that:- In the present case the addition has been made by the income tax authorities by treating the cash deposits in the bank account as an unexplained cash credit within the meaning of section 68 of the Act. The legal point raised by .....

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credited in the books of an assessee . The Hon'ble Bombay High Court in the case of Shri Bhaichand Gandhi (1982 (2) TMI 28 - BOMBAY High Court ) has approved the proposition that a bank Pass Book maintained by the bank cannot be regarded as a book of the assessee for the purposes of section 68 of the Act . Factually speaking, in the present case, assessee is not maintaining any books of account and section 68 of the Act has been invoked by the Assessing Officer only on the basis of the bank Pa .....

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Respondent : Shri A.K.Kardam ORDER The captioned are two appeals pertaining to assessment year 2011-12, preferred by husband and wife. In both the appeals the dispute is common, which revolves around treating cash deposits made in the joint bank account to the extent of ₹ 27,36,500/- as unexplained cash credits within the meaning of section 68 of the Income Tax Act, 1961( in short the Act ). 2. In the case of the husband, i.e. Shri Mahendra Chintaman Pitkar, the amount has been assessed o .....

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e Assessing Officer under section 143(3) of the Act dated 28/03/2014. In this appeal assessee has raised the following Ground of appeal:- On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in restricting the addition under section. 68 made by the Ld. A.O in respect of cash deposits only to the extent of ₹ 27,36,500/- as against the claim of appellant that entire addition of ₹ 29,53,500/- may please be deleted. The said addition was made on substant .....

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Gandhi [1983-(141)ITR -0067-BOM} in which it is held that, The pass book supplied by the bank to the assessee could not be regarded as a book of the assessee, that is, a book maintained by the assessee or under his instructions. 4.1 It is sought to be pointed out that the Additional Ground of appeal involves a legal issue, for which the relevant facts are already on record and, therefore, it should be admitted for adjudication. The Ld. Departmental Representative has not opposed the plea for adm .....

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CIT, 229 ITR 383(SC). Accordingly, at the time of hearing, it was pointed out that the Additional Ground of appeal is being admitted for adjudication. As a consequence, both the sides have been heard on merits of the Additional Ground of appeal also. 6. Briefly put, the relevant facts are that the appellant is an individual, who was employed with the Municipal Corporation of Greater Mumbai. The Assessing Officer noted that during the year under consideration cash was deposited on various dates t .....

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y medical treatment. It was further explained that the medicines required were being imported and for that purpose payments by cheques were made to the dealer, who was having import licence. It was pointed out that the monthly expenditure on this count was nearly ₹ 2.50 lacs i.e. ₹ 30.00 lacs a year. The assessee being a salaried employee with limited resources, the said amounts were received from family members, relatives and friends for the purpose of the medical treatment of his w .....

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CIT(A) gave relief of ₹ 2,70,000/- with respect to the withdrawals found in the bank account of assessee s father and accordingly, he confirmed the balance of the addition of ₹ 27,36,500/- as an unexplained cash credit under section 68 of the Act. Against such an addition, the assessee is in further appeal before the Tribunal. 7. Before me, the first and foremost plea of the assessee is that the explanation of the assessee has been unjustly rejected in as much as the said fact-situat .....

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is undergoing treatment of multiple sclerosis. 'Multiple Sclerosis' is a long- lasting disease which affects one's brain, spinal cord, and the optic nerves In one's eyes It causes problems with vision, balance, muscle control, and other basic body functions. It is a very rare kind of disease. 4. She is bedridden for last many years. The treatment involves a substantial medical expenditure. The medicines to the above disease are purchased from outside India which are very costly. .....

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7 ,48,290/- and had no other source of income. Hence, I had to take the funds from parents, in-laws, other relatives and also from friends and colleagues. 7. There were numerous relatives, friends and well wishers who were helping our family by giving small contributions on humanitarian grounds. Since the payment for medicines to Kantilal Chhaganlal Sec. Pvt. Ltd was required to be made by cheque, it became inevitable for me to keep the funds ready in one single account to keep the track of the .....

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it, a reference has also been made to the Paper Book filed, wherein is placed the copies of papers relating to the treatment of multiple sclerosis disease of assessee s wife. Ld. Representative for the assessee also pointed out that all the payments made for purchase of medicines are by way of account payee cheques and the same is evident from the copy of the bank statement itself, which has also been placed in the Paper Book filed before me. Apart from reiterating the explanation rendered befor .....

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out that the explanation of the assessee of having received money from relatives and friends is not supported by any corroborative evidence and, therefore, the same has been rightly rejected. In this manner, the order of the CIT(A) is sought to be defended. 9. I have carefully considered the rival submissions. In the present case the addition has been made by the income tax authorities by treating the cash deposits in the bank account as an unexplained cash credit within the meaning of section .....

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situation where any sum is found credited in the books of an assessee ............. . The Hon'ble Bombay High Court in the case of Shri Bhaichand Gandhi (supra)has approved the proposition that a bank Pass Book maintained by the bank cannot be regarded as a book of the assessee for the purposes of section 68 of the Act . Factually speaking, in the present case, assessee is not maintaining any books of account and section 68 of the Act has been invoked by the Assessing Officer only on the ba .....

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on rendered by the assessee has been merely disbelieved without establishing any credible infirmity or fallacy in the same. Ostensibly, the circumstances in which the cash deposits have been made and the purpose for which such monies have been utilized is emerging from record and in any case, there is no material found by the Assessing Officer to dis-prove the same. Of course, the assessee could not produce any formal corroborative evidence of having received respective amounts from friends and .....

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