TaxTMI 
TaxTMI 
2016 (3) TMI 635
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.... opportunity to the appellant to submit evidence in support of his case rendering the impugned order untenable in law. 6. That the Ld. A.O. completed the assessment in an arbitrary manner wrongly invoking Section 68 of the Income Tax Act 7. That the Ld. CIT (Appeal) without any justification came to a finding that" the conduct of the appellant is against human probabilities and apparently the said story has been concocted by the appellant to explain the cash deposit Rs. 20,00,000/- in his Bank Account". 8. That the authorities were wrong in making an addition of Rs. 13.20 Lakh which was received by the appellant at the time of his marriage which is normal activity acceptable in the society. 9. That the order under appeal is against facts and law and circumstances of the case. 2. During the course of hearing, it was noted that this appeal is filed late by one day, for which an application for condonation of delay is filed and being convinced with the explanations furnished by the assessee in this regard, we condone the delay and admit the appeal for hearing. 3. Grounds No.1 & 2 are general in nature and no specific argument was advanced by t....
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....ransferred to the company's account. The ld. CIT(A) re-examined the claim of the assessee, but was not convinced with it. The Assessing Officer and the ld. CIT(A) has also noted that the assessee and the company were having an account with the same branch of the bank. In that situation, what was the need of the assessee to deposit the cash received from various parties on behalf of the company in his accounts instead of company's account. It could have been very well deposited in the company's account, as both the accounts are in the same bank. This query raised by the Revenue was not properly answered by the assessee. Since no confirmation was filed from the aforesaid creditors of the parties, the Revenue has treated this deposit as unexplained and confirmed the addition. 8. Aggrieved, the assessee has preferred an appeal before the Tribunal and reiterated his contentions. Besides, it was also contended that the assessee did not maintain the books of account and these cash deposits were noted from the bank passbook of the assessee. Therefore, in the absence of the regular books of account, provisions of section 68 of the Act cannot be invoked. In support of his contentions, the....
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....oked where any sum is found credited in the books of account of the assessee maintained for the previous year and the assessee offers no explanation about the nature and source thereof or the explanation offered by him/her is not in the opinion of the Income Tax Officer satisfactory, meaning thereby the maintenance of the books of account of the assessee in which credit entry so found is a condition precedent for invoking the provisions of section 68 of the Act. In case the assessee has not maintained the books of account and whatever credit entries are found by the Assessing Officer, it was from the bank account of the assessee in which deposits were made at different point of time, provisions of section 68 of the Act cannot be invoked. While holding so, the Tribunal has also relied upon the judgment of the Hon'ble jurisdictional High Court in the case of Nanak Chandra Laxman Das vs. CIT, [1983] 140 ITR 151 and CIT vs. Bhaichand N. Gandhi [1982] 140 ITR 67 (Bom). In the light of these proposition of law and the facts of the present case are examined, we find that the assessee has not maintained the books of account and the entries of deposit of Rs. 20 lakhs was found from the ....
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....e a book entry and if that book entry is not satisfactorily explained, then it should be treated as income of the assessee. 14. Similar view was also expressed by the Hon'ble Patna High Court in the case of Laxmi Narain Gupta vs. CIT (supra) by holding that if a particular amount does not appear as cash credit in the books of the assessee, though an investment thereof is obtained, addition is not to be made under section 68 of the Act but under section 69 of the Act. 15. In the light of the aforesaid legal proposition, if we examine the facts of the case in the instant case, we find that the assessee has not maintained the books of account, but cash deposit in the bank account of the assessee was found. Therefore, the addition under section 68 of the Act is not possible, but the Assessing Officer can ask the assessee to explain the source of deposit of Rs. 20 lakhs in the bank account and if the assessee fails to explain the same, addition of Rs. 20 lakhs can be made as unexplained income of the assessee. In the instant case though the assessee has furnished list of persons from whom he has collected advances given by the company on behalf of the company, but no confirmat....