2025 (1) TMI 332 - SCH - Income Tax

Addition u/s 68 - Assessee argument entries cannot be said to be the income for the previous year as it was wrongfully entered and reversed immediately on the next day - as decided by HC 2024 (5) TMI 1503 - PUNJAB HARYANA HIGH COURT assessees may make fictitious entries and return the same on the next day for taking tax benefits. There may be cases where the entries in the books of accounts may not be reflected in the bank account as the entries may be made in cash or in cheque which may not be ultimately encashed. Also actual income of the assessee which accrues to him during the financial year, if there is an entry of any amount in the books of accounts as on 31st March, the same would be included as income of the assessee, even if he/ she may not have encashed the cheque on that day HELD THAT - Having heard the learned Senior counsel appearing for the petitioner and having gone through the materials on record, we see no good reason to interfere with the impugned order passed by the High Court. Special Leave Petition is, accordingly, dismissed.

Summary

The Supreme Court, comprising Hon'ble Mr. Justice J. B. Pardiwala and Hon'ble Mr. Justice Manmohan, addressed the matter presented by the petitioner, represented by Ms. Kaveeta Wadia and her legal team. The Court "condoned the delay" in filing but found "no good reason to interfere with the impugned order passed by the High Court." Consequently, the Special Leave Petition was dismissed, and any pending applications were also disposed of.