2016 (8) TMI 1403

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....n 6.6.2007. 2.1. The Ld.CIT(A) at page 1 of the paper book records that, no books of accounts have been maintained by the assessee. 2.2. During the course of assessment proceedings the A.O. observed certain credit entries amounting to Rs. 16,12,694/- were found in the bank account of the assessee with HDFC bank. The Explanation given by the assessee was rejected by the A.O. and the amount of Rs. 16,12,694/- was added u/s 68 of the Income Tax Act, 1961 (the Act). 2.3. On appeal the the Ld.CIT(A) granted part relief. 3. Further aggrieved the assessee is before us. 4. We have heard Shri Gautam Jain along with Shri Piyush Kumar Kamal, the Ld.Counsel for the assessee and Shri P.Damkanunjna, Ld.Sr.D.R. on behalf o....

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....hi (supra) and while answering the question i.e. whether on the facts and circumstances of the case, the Tribunal was justified in holding that cash credit for the previous year shown in the assessee's bank passbook issued to him by the bank, but not shown in the cash book maintained by him for that year does not fall within the ambit of section 68 of the Act and as such the sum so credited is not chargeable to income tax as the income of the assessee of that previous year, their Lordships of the Hon'ble Bombay High Court categorically held that passbook supplied by the bank to the assessee could not be regarded as book of the assessee, that is, a book maintained by the assessee or under his instruction. The relevant observations of....

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.... 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 justified in the conclusions at which it arrived." 8. In the case of Anand Ram Ratiani vs. CIT (supra), the Hon'ble Gauhati High Court has also held that perusal of section 68 of the Act shows that in relation to expression "books", the emphasis is on the word "assessee" meaning thereby that such books have to be the books of the assessee himself and not of any other assessee. In that case, the books of account of the partnership firm were not treated as those of the individual partner and accordingly the additions made in the hands of the individual partners on the b....