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| The Tax Publishers2020 TaxPub(DT) 3984 (Kol-Trib) INCOME TAX ACT, 1961
Section 68
Department argued that Unexplained cash credits can very well be added even if they have not credited in relevant previous year in issue, however, decision in Ivan Singh [Tax Appeal No. 29 of 2013 : 2020 TaxPub(DT) 1153 (Bom-HC)] making it clear that the clinching statutory expression “that previous year in section 68” had to be interpreted previous year relevant to the assessment year in issue only, therefore, appeal of Revenue was dismissed.
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Income from undisclosed sources - Addition under section 68 - Unexplained cash credits - Year of addition
Revenue's grievance was that CIT(A) had erred in deleting the addition under section 68 of unexplained cash credits in the nature of assessee's share application money added in the course of assessment framed, despite the fact that the same lack of genuineness / creditworthiness. CIT(A) had deleted the addition for precise reason that amount in question was not credited in assessee's books in the relevant previous year from 1-4-2012 to 13-3-2013. Held: Department argued that unexplained cash credits can very well be added even if they have not been credited in relevant previous year in issue. However, there was not merit in the argument in view of decision of Ivan Singh [Tax Appeal No. 29 of 2013 : 2020 TaxPub(DT) 1153 (Bom-HC)] making it clear that clinching statutory expression “that previous year in section 68” has to be interpreted the previous year relevant to the assessment year in issue only. Therefore, there was no merit in Revenue's grievance and the same was rejected.
Followed:Ivan Singh v. Asstt. CIT [Tax Appeal No. 29 of 2013] : 2020 TaxPub(DT) 1153 (Bom-HC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2013-14
INCOME TAX ACT, 1961
Section 37(1)
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