2025 (5) TMI 126

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....fficer [(for the sake of convenience, hereinafter referred in short as Ld. AO)] for A.Y. 2015-16. 2. The assessee has raised following grounds of appeal : - 1 On the facts and in the circumstances of the case and in law the Ld. CIT (Appeals) erred in confirming the following additions made by the Assessing Officer: i. Rs. 28,88,484/- being the amount of alleged commission received on surmises and conjectures without there being any evidence in this regard: ii. Rs. 42,98,000/- on account of alleged mis-match in the cash deposited with the bank. Both the above actions being erroneous, unlawful and untenable it is prayed that the same must be quashed with directions for appropriate relief. 3. The brief....

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....68,98,000/-. However, he observed that as per the cash book furnished on 04.12.2017 the total amount deposited in the bank account is only Rs. 26,00,000/-. The Learned also observed that the assessee has to explain the source of balance of Rs. 42,98,000/- deposited in the bank on various dates during the year as per the details given in the assessment order and accordingly treated the said amount of Rs. 42,98,000/- as unexplained cash credit as per the provisions of section 68 of the Act and added back to the returned income of the assessee for the year under consideration. The Learned AO completed the assessment at an income of Rs. 71,86,484/- by making addition of Rs. 28,88,484/- and Rs. 42,98,000/-. 4. Aggrieved by the order of the AO....

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....68 of the Act and said section is a deeming provision which can be invoked only if the conditionalities contained in the deeming provision are fulfilled. He submitted that it is a basic requirement of any deeming provisions and the rudimentary condition required to be satisfied u/s. 68 of the Act is that the relevant entry ought to be a cash credit and a cash credit essentially and invariably Involves the availing of on credit from an outsider and it indubitably envisages a liability. It was further submitted that nowhere in the order the AO has identified the person to whom the assessee owes the credit on account of those missing entries and the monies in question have not emanated or come to hand of the Assessee from any external sources.....