TMI Blog2017 (12) TMI 1706X X X X Extracts X X X X X X X X Extracts X X X X ..... e only if any sum is found credited in the books of the assessee. A book means a collection of sheets of papers bound together with the intention that such binding shall be permanent and papers used are kept collectively in one volume. A book which contains successive entries of items maybe a good memorandum book but until those entries are totaled or balanced or both as the case may be, there is no reckoning and no accounts. A book which merely contains entries of items of which no account is made at any time, is not a book of account in a commercial sense. Thus the addition made u/s 68 is not justified. Addition u/s 69B - Also peak determined by the A.O. is not correct, otherwise also, when once peak amount has been added then no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,79,335/- 2.1 Apropos solitary ground of the assessee, the facts as emerges from the order of the ld. CIT(A) is as under 3.1.3 I have duly considered assessed submission and carefully gone through assessment order passed by the AO. I have also taken a note of factual matrix of the case as well as applicable case laws relied upon. Fact of the case is that the A.O. has made addition of ₹ 5,79,335/- u/s 69 of the Act in the hands of assessee on the basis of a ledger, seized from the possession of Shri Manish Tambi whose premises were covered under search operation u/s 132 of the Act. It is pertinent to mention here that other persons namely Shri Badri Narayan Sodhani and Shri Bimal Kumar Jain have declared i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue of the investments may be deemed to be the income of the assessee of such financial year. ( stress supplied by me) The above section indicates that in order to be an income, there must be fulfillment of two conditions since the word and has been used in the section. The investments made in the current year must not be recorded in the books of accounts and the explanation not offered or not satisfactorily offered. In addition to the same, it may be noted that this is a deeming provision which means that even though the assessee has no real income it may be deemed to be his income. The provision which is deeming is always rebuttable. The use of the words if any in the section indicates that it is not compulsory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inion whether the explanation offered by the assessee is acceptable or otherwise. Here in this case, AO has found that assessee has not provided the reasonable explanation offered to him, the evidences produced before him about the nature and source of investment, accordingly, it is not a case of addition made merely on surmises, conjectures as well as without any supporting evidences. Therefore, in view of facts and circumstances of the case, addition made by the AO is hereby sustained and assessee s appeal is hereby dismissed. 2.2 During the course of hearing, the ld.AR of the assessee prayed for deletion of addition of ₹ 5,79,335/- confirmed by the ld. CIT(A) u/s 69B of the Act. 2.3 On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be made only if any sum is found credited in the books of the assessee. A book means a collection of sheets of papers bound together with the intention that such binding shall be permanent and papers used are kept collectively in one volume. A book which contains successive entries of items maybe a good memorandum book but until those entries are totaled or balanced or both as the case may be, there is no reckoning and no accounts. A book which merely contains entries of items of which no account is made at any time, is not a book of account in a commercial sense. Thus the addition made u/s 68 is not justified. It is noticed that over and above the peak credit, the A.O. has further made an addition of ₹ 52,40,137/- on account o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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