The Tax Publishers2019 TaxPub(DT) 7665 (Visakhapatnam-Trib)

INCOME TAX ACT, 1961

Section 68

Though assessee had maintained books of accounts however, cash deposits made in bank account were not found credited in books of account and in the absence of any finding with regard to cash deposits recorded in books of accounts of assessee, addition made by AO under section 68 in respect of cash deposit made in bank account was unsustainable.

Income from undisclosed sources - Addition under section 68 - Cash deposit in bank account not credited in books of account -

AO noticed cash deposits in assessee's bank account and disbelieved the claim of the assessee with regard to deposit pertaining to sale of gold and accordingly, AO treated impugned amounts as unexplained cash credit under section 68. Assessee's case was that assessee had made cash deposits in the bank account and not made any credit entries in books of account, therefore, AO ought not to have made the addition under section 68. Assessee's case was that assessee had made cash deposits in the bank account and not made any credit entries in books of account, therefore, AO ought not to have made the addition under section 68. Held: Though assessee had maintained books of accounts however, cash deposits made in bank account were not found credited in books of accounts and in the absence of any finding with regard to cash deposits recorded in books of account of assessee, addition made by AO under section 68 in respect of cash deposit made in bank account was unsustainable.

Followed:Mehul V. Vyas v. Income Tax Officer, in (2017) 164 TTD 0296 (Mumbai) : 2017 TaxPub(DT) 1068 (Mum-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12



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