TaxTMI 
TaxTMI 
2021 (5) TMI 98
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....e 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 challenging the order of the ld. CIT(A) in confirming addition U/s 6....
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....tended 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 represents his savings of the past so many years. He generally maintains some cash balance with him for any medical or other emergencies; he is suffering from high blood pressure and diabetes since last alm....
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....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'ble Bombay High court in the case of Bhai Chand N Gandhi 141 ITR 67 and also relied upon the decision of the Coordinate bench of Mumbai Tribunal in the case of Srikant G Sawant ITA No. 7712/M/2012 order dated 25/04/2018. 9. After having gone through the facts and circumstances, we observe that cre....
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....n 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 cannot be regarded as a book of the assessee for the purposes of section 68 of the Act. Factually speaking, in the present case, assessee is not maintaining any books of account and section 68 of the Act has been invoked by the Assessing Officer only on the basis of the bank Pass Book. The invoking of section 68 of ....