TaxTMI 
TaxTMI 
2017 (4) TMI 1421
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....sessing Officer under Section 68 of the Income Tax Act, 1961 (in short 'the Act') on account of cash deposited in the bank account. The Assessing Officer noticed that the bank account of the assessee with SBI show a cash deposit of Rs. 12 lakhs which has not been declared by the assessee. The assessee explained before the Assessing Officer that the cash belongs to her husband Sri Surendra Kumar out of his explained source and further submitted that her husband has received this amount from his father Sri Govindappa. The Assessing Officer did not accept the explanation of the assessee and made an addition under Section 68 of the Act. The assessee challenged the action of the A.O. before the CIT(Appeals) and contended that the transac....
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....en there is no credit in the books of accounts. He has also relied upon the decision of Delhi Bench of Tribunal dt8.2.2013 in the case of Vijendra Kumar Jain & Sons (HUF) Vs. ITO in ITA No.1315/Del/2011. Thus the learned Authorised Representative has submitted that the provisions of Section 68 cannot be invoked in the hands of the assessee. 4. On the other hand, the learned Departmental Representative has relied upon the orders of the authorities below and submitted that the Assessing Officer as well as CIT (Appeals) has duly considered the explanation as well as evidence filed by the assessee and found hat the explanation as well as proof produced by the assessee are not sufficient to show that the father-in-law as assessee has advanced t....
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....refore, the authorities below doubted the genuineness of the transaction. Even otherwise, when the accounts in which this cash was found deposited is in the joint name of assessee and Mr. Surendra Kumar then explanation of the assessee that this amount belongs to her husband cannot be brushed aside without proper inquiry. Thus in view of the fact that the creditor though relative of the assessee accepted the transaction of advance of Rs. 12 lakhs then in the absence of conducting a proper enquiry of disproving the claim of the assessee the said explanation cannot be rejected on technical reasons. 6. Further there is no dispute that this is a transaction of deposit in the bank therefore the issue of applicability of Section 68 arises in vie....
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.... 68 of the Act. This issue was examined by the Hon'ble Bombay High Court in the case of CIT vs. Bhaichand N. Gandhi (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 bo....
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.... 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 justified in the conclusions at which it arrived." 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 individua....
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....bank account of the assessee, yet we have examined the veracity of the additions made by the Assessing Officer on certain deposits by invoking the provisions of section 68 of the Act and we find that before the ld. CIT(A) the assessee has furnished reasonable and plausible explanations along with confirmation with regard to the different deposits. Since the ld. CIT(A) has adjudicated the issue on merit also in the light of the explanations and confirmations placed before him, in a proper perspective and we find no infirmity therein, we confirm the same. Accordingly, finding no merit in the Revenue's appeal, we dismiss the same. In the result, appeal of the Revenue and Cross Objection of the assessee are dismissed. 12. Respectfully f....