TaxTMI 
TaxTMI 
2021 (5) TMI 98
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....Officer inasmuch as the appellant has explained the source of cash deposited in his bank accounts and hence, the impugned addition of Rs. 4,03,000/- ought to be deleted." 2. The hearing of the appeal was concluded through video conference in view of the prevailing situation of Covid-19 Pandemic. 3. As per the facts of the present case, the assessee filed his return of income on 25/08/2015 declaring total income of Rs. 3,79,330/-. Later on, the case of the assessee was selected for scrutiny and after serving statutory notices and seeking reply of the assessee, the order of assessment U/s 143(3) of the Act was passed on 16/12/2017 thereby making addition U/s 68 of the Act. 4. Being aggrieved by the order of the A.O., the assessee carried the matter before the ld. CIT(A). However, the ld. CIT(A) after considering the case of both the parties, partly allowed the appeal filed by the assessee and restricted the addition to the tune of Rs. 4,03,000/- U/s 68 of the Act. Against the order of the ld. CIT(A), the assessee has preferred present appeal before the ITAT by taking the above mentioned grounds of appeal. 5. Both the grounds raised by the assessee are interrelated and cha....
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....lant has not filed any submission about this ground. Therefore this ground is not allowed". In the written submissions filed before the CIT(A), the appellant has contended that the Assessing Officer ought not to have invoked the provisions of section 68 of the Act, however; the CIT(A) in his entire order has not dealt with the aforesaid contentions and hence, CIT(A) has fallen in error in sustaining the additions made by the Assessing Officer - refer para 5.2 at page nos 4 and 5 of the CIT(A) order. In view of the above, the appellant submits that the CIT(A) ought not to have confirmed the action of the Assessing Officer in invoking the provisions of section 68 and thus, the impugned addition needs to be deleted. 6. Regarding the addition sustained by the CIT(A), individual additions are discussed as under - 6.1 Opening Cash Balance - Rs. 3,38,000 (a) The Assessing Officer has made an addition of Rs. 3,38,000 as unexplained cash credit of the opening cash balance of Rs. 3,38,000 shown by the appellant. (b) The appellant submits that - (i) he is 64 years of age in the relevant previous year and the opening balance of Rs. 3,38,000....
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....at the assessee is a Doctor by profession, who retired from Rajasthan Government and files his return of income regularly. It was a case of the assessee that there is no other person who stays with the assessee and his wife, Mrs. Mahendra Gupta. The assessee has challenged the additions U/s 68 of the Act on the ground that section 68 of the Act is a deeming Section fastening liability on the subject and should be strictly construed. It was submitted that pre-requisites for invoking the provisions of Section 68 are that: (i) any sum is found credited in the books of account of assessee (ii) the assessee offers no explanation about the nature and source thereof (iii) the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory. Therefore, according to the ld AR, the pre-requisite for invoking the provisions of section 68 is the credit entries in the books of account of the assessee. It was further submitted that the assessee U/s 44AA of the Act is not required to maintain books of account, therefore, the A.O. could not have made addition U/s 68 of the Act. In this regard, the ld AR also relied on the decision of the Hon'bl....
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....ourt had thereafter been followed by a 'SMC' bench of the ITAT, Mumbai in the case of Smt. Manshi Mahendra Pitkar Vs. ITO 1(2), Thane (2016) 73 taxmann.com 68 (Mumbai Trib.) wherein it was held as under: - "I have carefully considered the rival submissions. In the present case the addition has been made by the income tax authorities by treating the cash deposits in the bank account as an unexplained cash credit within the meaning of section 68 of the Act. The legal point raised by the assessee is to the effect that the bank Pass book is not an account book maintained by the assessee so as to fall within the ambit of section 68 of the Act. Under section 68 of the Act, it is only when an amount is found credited in the account books of the assessee for any previous year that the deeming provisions of section 68 of the Act would apply in the circumstances mentioned therein. Notably, section 68 of the Act would come into play only in a situation Where any sum is found credited in the books of an assessee..........., The Hon'ble Bombay High Court in the case of Shri Bhaichand Gandhi (supra) has approved the proposition that a bank Pass Book maintained by the bank ca....