Section 68 cannot cover bank deposits shown only in a bank statement; alternative reliance on section 69 and section 292B also failed.

Section 68 could not be invoked for bank deposits reflected only in a bank passbook or bank statement, because such records are not the assessee's own books of account for that purpose; the addition on that footing was therefore unsustainable. The alternative reliance on section 69 also failed because the assessment did not rest on that provision, and section 292B could not cure a defect that went to the validity of the addition itself rather than a mere mistake in form. The bank-deposit addition was deleted and the assessee's appeal was allowed.

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Issues: (i) Whether the amount deposited in the bank account could be assessed as unexplained cash credit under section 68 of the Income-tax Act, 1961. (ii) Whether the reference to section 69 and the invocation of section 292B of the Income-tax Act, 1961 could sustain the addition.

Issue (i): Whether the amount deposited in the bank account could be assessed as unexplained cash credit under section 68 of the Income-tax Act, 1961.

Analysis: The addition rested on bank deposits reflected in the bank account. The governing principle applied was that section 68 operates only where a sum is found credited in the books of the assessee, and a bank passbook or bank statement is not the assessee's own books for this purpose. On that basis, the addition could not be supported under section 68.

Conclusion: The issue was decided in favour of the assessee.

Issue (ii): Whether the reference to section 69 and the invocation of section 292B of the Income-tax Act, 1961 could sustain the addition.

Analysis: The alternative reliance on section 69 was not accepted, as the addition was not founded on that provision in the assessment proceedings. Section 292B also did not assist the Revenue because the defect was not treated as a mere mistake in form; the addition itself was held to be unsustainable on the governing legal position.

Conclusion: The issue was decided in favour of the assessee.

Final Conclusion: The addition made on account of bank deposits was deleted, and the assessee's appeal was allowed.

Ratio Decidendi: Section 68 cannot be applied to credits reflected only in a bank passbook or bank statement, since such a record is not the assessee's books of account for the purposes of that section.

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