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TMI Blog2012 (2) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... inflow of any money with the assessee either in cash or through banking channel. Hence, there is no basis whatsoever for making any addition under these circumstances u/s.68 of the Act – Decided in favor of assessee. Similiar position is in relation to cheques issued by assessee and then advising party for non-presentatio. Aforesaid is held in this case also. - ITA No. : 6777/Mum/2008 ITA No. : 3265/Mum/2009 - - - Dated:- 4-1-2012 - SHIRI R. S. SYAL, SHRI D. K. AGARWAL, JJ. Assessee by : Shri Rajeev Khandelwal Department by : Shri A. K. Nayak O R D E R Per R. S. SYAL, AM : These two appeals one by the assessee and the other by the Revenue relate to the Assessment Years 2002-03. ITA No. : 6777/Mum/2008 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these circumstances, the assessee argued that the amount in question was debited to the bank account and credited to the bank accounts of these two parties. The A.O. was not convinced with the submissions advanced on behalf of the assessee in this regard and hence made an addition for the said sum. The learned CIT(A) also confirmed the addition. 4. After considering the rival submissions and perusing the relevant material on record it is observed that the addition has been made u/s.68 of the I.T. Act. Addition under this section is made, when the assessee fails to prove the genuineness of a sum credited by it in the books of accounts. We are really unable to appreciate the basis on which such addition can be made u/s 68 for the obvious r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... round no.1 the assessee received certain cheques and did not deposit in the bank account, and through this ground it issued cheques and advised the recipient parties not to deposit the cheques due to certain commercial reasons. Since those cheques were issued by the assessee , these were recorded in the books of account, but due to their stopping for encashment led to not passing of any consequential entry by the bank. The reasons given by us for deleting the addition in ground no. 1 squarely apply to this ground as well. Here also, the A.O. has made the addition by considering the bank reconciliation statement furnished by the assessee, indicating the cheques issued but not encashed before the close of the year. Following the view taken he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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