Section 68 requires a credited sum in the books; unexplained cash credit addition failed in a property transaction.

Section 68 applies only where a sum is found credited in the assessee's books for the relevant year, and an addition cannot stand without that foundational fact. In this property transaction, the sale deed and connected documents described cash instalments paid over time, and the Revenue did not establish any fresh credit entry in the books for the disputed amount. As the statutory precondition of a credited sum was not proved, the unexplained cash credit addition was unsustainable and the assessee succeeded.

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Issues: (i) Whether the amount attributed to the assessee's share in the property transaction could be brought to tax as unexplained cash credit under section 68 of the Income-tax Act, 1961.

Issue (i): Whether the amount attributed to the assessee's share in the property transaction could be brought to tax as unexplained cash credit under section 68 of the Income-tax Act, 1961.

Analysis: The sale deed recorded that the consideration was paid in cash instalments over a long period and the agreement to sell and connected record supported that narration. The addition was made without establishing a fresh credit entry in the books for the disputed amount and without dislodging the documentary explanation regarding the timing and manner of payment. In the absence of proof of a sum credited in the books during the relevant year, the statutory condition for section 68 was not satisfied.

Conclusion: The addition under section 68 was unsustainable and the issue was decided in favour of the assessee.

Final Conclusion: The assessment addition relating to the property transaction could not be sustained on the basis adopted by the Revenue, and the assessee obtained full relief in the appeal.

Ratio Decidendi: Section 68 applies only where a sum is found credited in the assessee's books for the relevant year, and an addition cannot be sustained without establishing that foundational fact.

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