|The Tax Publishers2020 TaxPub(DT) 5068 (Visakhapatnam-Trib)
INCOME TAX ACT, 1961
Where cash deposits in bank account were not recorded in the books of account of assessee, addition made by AO under section 68 in respect of cash deposits made in bank account was unsustainable.
Income from undisclosed sources - Addition under section 68 - Cash deposits in bank account not found credited in assessee's books of account -
AO doubted cash deposits in assessee's bank account and made addition on amount concerned under section 68. Assessee's case was that deposits were made in bank account, and not in the books of account. Bank account statement or pass books were not the books of account, hence, AO was not permitted to make addition under section 68. Held: As per section 68, sum found credited in books of account maintained by assessee, for which no explanation is offered by assessee required to be brought to tax. Though assessee had maintained books of account, cash deposits made in bank account were not found credited in books of account. The entire transactions were made outside the books of account. In the absence of any finding with regard to cash deposits recorded in the books of account of assessee, addition made by AO under section 68 in respect of cash deposits made in bank account was unsustainable.
Followed:Smt. Asha Sanghavi v. ITO [I.T.A. No. 33/Viz/2019, dated 15-11-2019] : 2019 TaxPub(DT) 7665 (Visakhapatnam-Trib).
FAVOUR : In assessee's favour.
A.Y. : 2014-15
IN THE ITAT, VISAKHAPATNAM BENCH
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