TaxTMI 
TaxTMI 
2018 (12) TMI 1064
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....ined source. 3. Briefly stated facts are that the assessee is an individual and filed her return of income declaring salary income, interest, income from other sources and long-term capital gain. The assessee in her bank account has deposited cash amounting to Rs, 27,71,000/- maintained with the Dena bank bearing account No. 1796. The details of the cash deposit in her bank account stands as under: Date Amount (Rs) 05/08/2010 31000 04/09/2010 500000 08/09/2010 750000 13/10/2010 990000 23/10/2010 500000 Total 2771000 3.1 The assessee explained the source of such cash deposit out of the cash withdrawn from the bank. However, the AO disagreed with the submission of the assessee by observing that there was no documentary evidence furnished by the assessee in support of her contention. Therefore, the AO treated the same as undisclosed income of the assessee. 4. Aggrieved assessee preferred an appeal before the Ld. CIT (A). The assessee before the Ld. CIT (A) submitted that she had deposited a sum of Rs. 31,000/- out of the cash withdrawal from the bank. 4.1 A sum of Rs. 5,00,000/- was taken from Shri Vajubhai Patel and sum of R....
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....lacs and Rs. 7.5 lacs. The Ld. AR in support of his claim filed the copies of the bank statements, confirmation from the loan parties, income tax return, and cash flow statement of both the parties which are available in the paper book. 6.2 The Ld. AR also placed his reliance on the judgment of Hon'ble High Court of Rajasthan in the case of Aravali Trading Co. (220 CTR 622). 6.3 The Ld. AR for the assessee also claimed that the provisions of section 68 of the Act could not be applied to the instant case on the ground that the money received from the loan parties was not credited in the books of accounts. As per the Ld. AR, the bank account of the assessee, is not part of the books of accounts. The Ld. AR in support of his claim relied on the order of this tribunal in the case of RameshbhaiSomabhai Patel Vs. ITO in ITA No. 1864/AHD/2014 pertaining to the assessment year 2008-09 vide order dated 19th April 2018. The relevant extract of the order is reproduced as under: ''5. When this appeal was called out for hearing, Shri Patel, learned counsel for the assessee invited my attention to Hon'ble Bombay High Court's judgement in the case of CIT vs. Bhaichand H. Ga....
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....n which income from an undisclosed source can be assessed or reassessed is to make the assessment on the basis that the previous year for such an income would be the ordinary financial year. Even under the provisions embodied ins. 68of the said Act, it is only when any amount is found credited in the books of 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. 5. 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, not 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 sup....
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....of the assessee to disclose the agriculture income in return for the purpose of the correct calculation of tax liability under the income tax Act. Section 4 of the Act which is titled as a charge of income-tax provides in sub-section as follows: "Charge of income-tax.-(1) Where any Central Act enacts that income-tax shall be charged for any assessment year at any rate or rates, income-tax at that rate or those rates shall be charged for that year in accordance with, and subject to the provisions (including provisions for the levy of additional income-tax) of, this Act in respect of the total income of the previous year of every person." 8.3 The aforesaid charging section thus provides that where any Central Act enacts that income-tax shall be charged for any assessment year at any rate or rates, income-tax at that rate or those rates shall be charged for that year in accordance with and subject to the provisions of the Act in respect of the total income of the previous year of any person. Section 4(1) thus means that while the total income of a person is to be determined in accordance with the provisions of the Act the rate or rates at which such income-tax will be paid....