INCOME TAX ACT, 1961

Section 68

Income from undisclosed sources - Addition under section 68 - Cash deposits in bank account - Sum not found credited in books of account

AO treated cash deposits in assessee's bank account as unexplained and made addition under section 68. Assessee contended that bank account could not be treated as book of account maintained by assessee. Held: As per section 68, amount found credited in books of account for which assessee failed to offer explanation to satisfaction of AO is required to be brought to tax under section 68, whereas in the instant case, said sum was not credited in books of account, but amount was found credited in bank account of assessee. The correct course of action for taxing sums paid into bank account was to tax under section 69 but it was not done. Therefore, addition made by AO under section 68 could not be sustained.

Followed:Smt. Asha Sanghavi in ITA. No. 33/Viz/2019 : 2019 TaxPub(DT) 7665 (Visakhapatnam-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12

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