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The Tax PublishersTax Appeal No. 29 of 2013
2020 TaxPub(DT) 1153 (Bom-HC) : (2020) 422 ITR 0128 : (2020) 272 TAXMAN 0036INCOME TAX ACT, 1961
Section 68
Where any sum is found to be credited in the books of Account maintained for any previous year and there was no proper explanation for such credit, the sum so credited can be charged to the income tax as the income of the assessee of “that previous yearâ€, therefore appeal of assessee was allowed.
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Income from undisclosed source - Addition under section 68 - Old outstanding sundry credit balances -
Assessee filed this appeal before Court contending that Tribunal was not right in sustaining the additions made of old outstanding sundry credit balances under section 68. Held: From the plain reading of the provisions of section 68, it does appear that where any sum is found to be credited in books of Account maintained for any previous year and there is no proper explanation for such credit, the sum so credited can be charged to the income tax as the income of the assessee of “that previous yearâ€. AO had relied upon the credits for the financial year 2006-07. However, the sum so credited, in terms of such credit, is sought to be brought to tax as the income of assessee, for the assessment year 2009-10. Crucial phrase in Section 68 which provides that sum so credited in the books and which was not sufficiently explained, might be charged to the income tax as income of the assessee of “that previous yearâ€.
REFERRED : Abdul Qayume v. CIT (1990) 184 ITR 404 (All) : 1990 TaxPub(DT) 0812 (All-HC), CIT v. Bhaichand H. Gandhi (1983) 141 ITR 67 (Bom) : 1983 TaxPub(DT) 0582 (Bom-HC), CIT v. Lakshman Swaroop Gupta & Brothers (1975) 100 ITR 222 (Raj) : 1975 TaxPub(DT) 0026 (Raj-HC)
FAVOUR : In assessee's favour
A.Y. :
INCOME TAX ACT, 1961
Section 37(1)
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