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TMI Blog2017 (12) TMI 1706X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by deleting the said addition of Rs. 5,79,335/-'' 2.1 Apropos solitary ground of the assessee, the facts as emerges from the order of the ld. CIT(A) is as under" ''3.1.3 I have duly considered assessed submission and carefully gone through assessment order passed by the AO. I have also taken a note of factual matrix of the case as well as applicable case laws relied upon. Fact of the case is that the A.O. has made addition of Rs. 5,79,335/- u/s 69 of the Act in the hands of assessee on the basis of a ledger, seized from the possession of Shri Manish Tambi whose premises were covered under search operation u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut the nature and source of the investments or the explanation offered by him is not, in the opinion of the AO, satisfactory, the value of the investments may be deemed to be the income of the assessee of such financial year.'' ( stress supplied by me) The above section indicates that in order to be an income, there must be fulfillment of two conditions since the word "and" has been used in the section. The investments made in the current year must not be recorded in the books of accounts and the explanation not offered or not satisfactorily offered. In addition to the same, it may be noted that this is a deeming provision which means that even though the assessee has no real income it may be deemed to be his income. The provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on (with suitable proof) as regards the investment in question. It is the right of the AO to frame the opinion whether the explanation offered by the assessee is acceptable or otherwise. Here in this case, AO has found that assessee has not provided the reasonable explanation offered to him, the evidences produced before him about the nature and source of investment, accordingly, it is not a case of addition made merely on surmises, conjectures as well as without any supporting evidences. Therefore, in view of facts and circumstances of the case, addition made by the AO is hereby sustained and assessee's appeal is hereby dismissed.'' 2.2 During the course of hearing, the ld.AR of the assessee prayed for deletion of addition of Rs. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its of Rs. 91,67,81,272/-. The addition u/s 68 of the Act can be made only if any sum is found credited in the books of the assessee. A book means a collection of sheets of papers bound together with the intention that such binding shall be permanent and papers used are kept collectively in one volume. A book which contains successive entries of items maybe a good memorandum book but until those entries are totaled or balanced or both as the case may be, there is no reckoning and no accounts. A book which merely contains entries of items of which no account is made at any time, is not a ''book of account' in a commercial sense. Thus the addition made u/s 68 is not justified. It is noticed that over and above the peak credit, the A.O. has fu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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