INCOME TAX ACT, 1961

Section 68

Income from undisclosed sources - Addition under section 68 - Unexplained cash credits - Addition made by AO treating assessee's bank account as her 'books of account'

AO found that assessee deposited cash during the year in her savings bank account. Accordingly, he called upon the assessee to explain the nature and source of the said cash deposits. As the assessee failed to provide any explanation as regards the nature and source of such cash deposits; the AO treated the same as unexplained cash credits under section 68. On appeal, CIT (A) confirmed such addition. Assessee contended that her bank account or bank passbook could not be held as her 'books of account', therefore, no addition could have validly been made in her hands under section 68 on account of unexplained cash credits. Held: Since bank account or bank passbook of assessee could not be held as her 'books of account'; no addition in respect of simplicitor cash deposits made in the said bank account could be validly made under section 68 and hence, the addition made under section 68 on account of unexplained cash credits was accordingly deleted.

Followed:CIT v. Bhaichand H. Gandhi (1983) 143 ITR 67 (Bom) : 1983 TaxPub(DT) 0582 (Bom-HC), Shri Mehul V. Vyas v. ITO (2017) 764 ITD 296 (Mum) : 2017 TaxPub(DT) 1068 (Mum-Trib), Smt. Manasi Mahendra Pitkar v. ITO (2016) 73 taxmann.com 68 (Mumbai) : 2016 TaxPub(DT) 4025 (Mum-Trib), ITO v. Kamal Kumar Mishra (2013) 33 taxamann.com 610 (Lucknow-Trib.) : 2013 TaxPub(DT) 2139 (Luck-Trib) and Smt. Madhu Raitani v. Asstt. CIT (2011) 10 taxmann.com 206 (Gauhati) (TM) : 2011 TaxPub(DT) 1943 (Gau-Trib)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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