Unexplained cash credit addition deleted where alleged client code modification in share transactions was not supported by evidence linking the assessee.

An addition as unexplained cash credit under section 68, based on alleged client code modification in share transactions, was held unsustainable where the assessee denied entering into the transaction and denied ownership of the relevant shares on the alleged date. The Revenue failed to produce documentary evidence showing that the assessee owned or sold the shares, or that the client code modification in question actually related to the assessee. In the absence of material linking the assessee to the attributed transaction, the addition could not be maintained and was deleted in favour of the assessee.

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Issues: Whether the addition of Rs. 2,53,000 as unexplained cash credit under section 68 of the Income-tax Act, 1961, on the basis of alleged client code modification in share transactions, was sustainable.

Analysis: The assessee denied having entered into any transaction with the broker and specifically denied ownership of the relevant shares on the date of the alleged transaction. The Revenue did not bring on record documentary evidence showing that the assessee owned or sold the shares or that the alleged client code modification actually related to the assessee. In the absence of material proving the transaction attributed to the assessee, the addition could not be sustained.

Conclusion: The addition under section 68 was not justified and was deleted; the issue was decided in favour of the assessee.

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