Section 68 cannot recast disclosed cash receipts as unexplained credit, and appellate enhancement needs prior notice and hearing.

Cash receipts already disclosed as professional income in the return could not be recharacterised as unexplained cash credit under section 68 for the same assessment year, as that would result in double addition. The ITAT also noted that enhancement of income in first appeal was unsustainable because no show-cause notice or opportunity of hearing was given to the assessee. On these grounds, the addition sustained and enhanced in appeal was deleted and the assessee's declared income position was restored.

---

---

Issues: Whether the enhancement of income under section 68 on cash receipts already disclosed in the return of income was valid, and whether such enhancement could be made without issuing a show-cause notice.

Analysis: The assessment order accepted the income declared in the return and did not doubt the cash receipts shown as professional income. Once such receipts were accepted as income, they could not again be treated as unexplained cash credit under section 68. The enhancement made in first appeal was also unsustainable because it was done without giving the assessee an opportunity of being heard. Treating the same receipt both as disclosed income and as unexplained credit would amount to double addition.

Conclusion: The addition sustained and enhanced in first appeal was deleted; the assessee succeeded.

Final Conclusion: The appellate order rejecting the enhancement and deleting the addition restored the assessee's declared income position.

Ratio Decidendi: Income once accepted in the return cannot be recharacterized as unexplained cash credit for the same assessment year, and any appellate enhancement must be preceded by notice and opportunity of hearing.

---