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TMI Blog2014 (1) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... entity of the creditors and the genuineness of the transactions. In doing so the CIT(A) has overlooked the decisions of Nanak Chandra Laxman Das v. CIT [1983] 140 ITR 151 (All.). 2. The CIT(A) has erred in law and on facts in deleting the addition made by Assessing Officer of Rs.7,89,333/- u/s 68 of the Income Tax Act, 1961. He failed to appreciate the fact that the assessee failed to file any evidence of the source of income of the alleged lenders. Mere confirmation letters or affidavits from the lenders do not save to prove the genuineness of the transaction. In doing so the CIT(A) has overlooked the decisions of Nanak Chandra Laxman Das (supra). 3. The CIT(A) has erred in law and on fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure amounting to Rs.87,000/-. 2. The assessee has filed cross objection challenging the additions of Rs.2.80 lakhs in respect of Stridhan of his wife and Rs.78,895 on the basis of presumption, sustained by the ld. CIT(A). 3. During the course of hearing, the ld. counsel for the assessee has opted not to press the cross objection filed by the assessee, to which the Revenue has no objection. Accordingly, the cross objection filed by the assessee is dismissed being not pressed. 4. Now we are left with Revenue's appeal, through which the order of the ld. CIT(A) is assailed on deletion of additions made under section 68 of the Income-tax Act, 1961 (hereinafter called in short "the Act"). 5. At the outset, the ld. counsel for the assessee inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gment of the Hon'ble Bombay High Court in the case of CIT v. Bhaichand N. Gandhi [1982], in which it has been categorically held that passbook supplied by the bank to the assessee could not be regarded as a book of the assessee. The expression "books" used in section 68 of the Act means the books have to be books of the assessee himself, not of any other assessee. The ld. counsel for the assessee further contended on merit also that the deposits found recorded in the bank account of the assessee were duly explained before the Revenue Authorities and having convinced with the explanations, the ld. CIT(A) deleted the addition. 6. Finding force in the arguments of the ld. counsel for the assessee in the light of the aforesaid judgments, the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee of that previous year. Meaning thereby maintenance of books of the assessee, in which credit entry so found, is a condition precedent for invoking the provisions of section 68 of the Act. Now the question arises whether the passbook issued by the bank with regard to the accounts of the assessee can be termed to be the books of the assessee for the purpose of section 68 of the Act. This issue was examined by the Hon'ble Bombay High Court in the case of Bhaichand N. Gandhi (supra) and while answering the question i.e. whether on the facts and circumstances of the case, the Tribunal was justified in holding that cash credit for the previous year shown in the assessee's bank passbook issued to him by the bank, but not shown in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing this principle, the pass book supplied by the bank to its constituent is only a copy of the constituent's account in the books maintained by the bank. It is not as if the pass book is maintained by the bank as the agent of the constituent, nor can it be said that the pass book is maintained by the bank under the instructions of the constituent. In view of this, the Tribunal was, with respect, justified in holding that the pass book supplied by the bank to the assessee in the present case could not be regarded as a book of the assessee, that is, a book maintained by the assessee or under his instructions. In our view, the Tribunal was justified in the conclusions at which it arrived." 8. In the case of Anand Ram Ratiani (supra), the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has furnished plausible and reasonable explanations with respect to the deposits found recorded in the bank passbook of the assessee and on merit also the ld. CIT(A) did not find any justification in the additions made by the Assessing Officer. Though we are of the view that provisions of section 68 of the Act cannot be invoked on the deposits made in the bank account of the assessee, yet we have examined the veracity of the additions made by the Assessing Officer on certain deposits by invoking the provisions of section 68 of the Act and we find that before the ld. CIT(A) the assessee has furnished reasonable and plausible explanations along with confirmation with regard to the different deposits. Since the ld. CIT(A) has adjudicated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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