TaxTMI 
TaxTMI 
2017 (12) TMI 1055
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....nd circumstances of the case. 3. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making addition of Rs. 22,01,000/- allegedly on the ground that assessee has deposited cash in his SB Account and that too by recording incorrect facts and findings and without observing the principles of natural justice. 4. That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in making addition of Rs. 22,01,000/-, is bad in law and against the facts and circumstances of the case. 5. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other." 3. Briefly stated, the facts giving rise to this appeal are that the case was selected for scrutiny u/s 148 of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] by obtaining approval on the basis of AIR information that the assessee had deposited cash amounting to Rs. 22,01,000/- in the Savings Bank account with Bank of India during the ye....
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.... of hearing and in violation of principles of natural justice and by ignoring the theory of peak credit. 2. That in any case and in any vie w of the matter, action of Ld. CTT(A) in confirming the action of Ld. AO in making addition Rs. 39,75,0001- on account of cash deposits u s. 68 is bad in law and against the facts and circumstances of the case. " 2. It was argued by the learned counsel for the assessee, Dr. Rakesh Gupta, Advocate that the addition u/s.68 cannot be made on account of cash deposits in bank and he relied upon the decision of courts of law in this regard. The cases relied upon are 171 ITR 532 (Del), 141 ITR 67 (Bombay), 292 ITR 232 (Mad.), 71 ITD 324 (Chd ITAT). In particular he relied upon the decision of ITAT Delhi Bench in the case of Roopak Jain vs. ITO, ITA No.5592/Del/2015 vide order dated 30.08.2016 on identical issue. 4. Learned DR, on the other hand, relied upon the orders of both the authorities below. 5. I have heard the rival contentions and perused the facts of the case. It is quite evident that the issue is covered by the decisions of various courts of law referred to by Dr. Rakesh Gupta, Advocate and in particular ....
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.... be equated to books of account because a pass book of the bank cannot be treated as a book of account of the assessee because this is proved by the banker, which is given to its customer and is only a copy of the customer's account in the books maintained by the bank. The bank does not act as an agent of the customer nor can it be said that the banker maintains the pass book under instructions of the customer (assessee) the relationship between the banker and customer is one of the debtor and creditor only. Therefore, a cash credit appearing in assessee "s pass book relevant to a particular previous year, in a case where the assessee does not maintain books of account, does not attract the provisions of Section 68. Keeping in view the above in the instant case neither the gifts relating to immovable property can be covered under Section 68 nor the gift of Rs. 2 lacs received by the assessee can be covered under the provisions. In view of the ITAT all gifts satisfied the requirement of a valid and genuine gift. The assessee has fully explained the same and therefore it cannot be said the addition can be sustained even u/s 69 of the Income Tax Act. In ITA No.5592/Del/2015 t....
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.... is found credited in the books of the assessee for any previous year that the ITA No.5592/Del/2015 section will apply and the amount so credited may be charged to tax as the income of that previous year, if the assessee offers no explanation or the explanation offered by him is not satisfactory. As the Tribunal has pointed out, it is fairly well settled that when moneys are deposited in a bank, the relationship that is constituted between the banker and the customer is one of debtor and creditor and not of trustee and beneficiary. Applying this principle, the pass book supplied by the bank to its constituent is only a copy of the constituent's account in the books maintained by the bank. It is not as if the pass book is maintained by the bank as the agent of the constituent, nor can it be said that the pass book is maintained by the bank under the instructions of the constituent. In view of this, the Tribunal was, with respect, justified in holding that the pass book supplied by the bank to the assessee in the present case could not be regarded as a book of the assessee, that is, a book maintained by the assessee or under his instructions. In our view, the Tribunal was justifi....