9911796707
TMI Blog2017 (5) TMI 1115X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer, by applying Section 68 of the Income Tax Act (hereinafter referred to as the Act), treated the said amount as income of the assessee chargeable to tax. The appeal of the assessee before the Commissioner of Income Tax (Appeals) failed. The Tribunal also, by the impugned order dated 20.07.2007, upheld the order of the Commissioner of Income Tax (Appeals) as well as that of the Assessing Officer. Aggrieved, the assessee has preferred this appeal, which has been admitted on the following substantial question of law :-- "When cheques received by assessee admittedly were not presented for collection in Bank, can it be said that amount mentioned in the cheques is found credited in the books of assesee attracting Section 68 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing a resident in whose name such credit is recorded in the books of such company also offers an explanation about the nature and source of such sum so credited; and b. such explanation in the opinion of the Assessing Officer aforesaid has been found to be satisfactory: Provided further that nothing contained in the first proviso shall apply if the person, in whose name the sum referred to therein is recorded, is a venture capital fund or a venture capital company as referred to in clause (23FB) of Section 10." The aforesaid provision lays-down that where sum is credited in the books of accounts and the assessee fails to offer a satisfactory explanation regarding the said entries, the sum so credited may be charged to income tax as th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its fold, the entry either by way of cash or by cheque irrespective of the encashment of the cheques. In view of the above, both the essential conditions for applicability of Section 68 of the Act stands fulfilled. The decision of the Supreme Court in the case of Commissioner of Income Tax v. Excel Industries Limited (2013) 358 ITR 295 (SC) is of no help to the assessee inasmuch as the question of law referred therein was totally in a different context and was distinct from the legal question involved herein this appeal. The Apex Court, in connection with the said question, has quoted from its earlier decision in laying down the general preposition that income tax is a levy on income and not on any hypothetical income. The aforesaid auth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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