INCOME TAX ACT, 1961

Section 68

Income from undisclosed sources - Addition under section 68 - Unexplained bank credit entries -

AO, on perusal of the bank account of assessee, found that there were some debit and credit entries. He held that assessee had not explained the narration for debited entries, as well as some of credit entries. Further, it was held that a credit entry for which the assessee had not given any narration. Since assessee has failed to explain the bank entries appearing in the bank statements, Credit entries which have no explanations were treated as unexplained income and added to the income of the assessee. Held: The entries considered by AO includes bank reversal entries too. Explanation of the credit entries was examined which were received from three companies and the remaining from flagship company of the assessee. There was an un-reconciled difference which was already declared as business income in the return filed in response to the notice under section 153A. Since the balance amount was offered to tax and the other credit entries had been duly explained, thus, Revenue's appeal was dismissed.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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