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TMI Blog2024 (2) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer under section 68 of the Act is not sustainable is not sustainable. Effect of Mere mentioning of wrong section/provision - Only for not mentioning the correct provision in the assessment order, an amount which may be an income under the provisions of the Act cannot be allowed to go untaxed. Admittedly, in the Income Tax Act under Section 69 of the Act there is a provision of undisclosed investment and certainly an amount deposited in the Bank will come under the purview of investment. Otherwise also no prejudice has been caused to the petitioner as petitioner failed to show any prejudice even when a wrong provision has been mentioned in the assessment order. It is a settled legal principle that if a source of power can be traced, the mere mentioning of wrong section/provision will not invalidate the order. Even assuming the contention of the petitioner that passbook cannot be treated as part of Books of Accounts to be true; admittedly, the source of income in the case of both the assesses has not been proved; inasmuch as, both the assesses have failed to prove the identity/creditworthiness/genuineness of the creditors, who have given cash loan as claimed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l cost of land was appearing in the balance-sheet of the assessee for the Assessment Year 2013-14. It was the case of the assessee that the amount appearing in the Bank Account was received from Builder M/s. Singh Estate and Singh Construction as advance signing amount for purchase of land and the total amount received by the assessee, Harmeet Singh was as under: (i) Sardar Pratap Singh and Mrs. Ajit Kaur- Rs. 36 Lakhs (ii) Harmpeet Singh - Rs. 33 Lakhs and (iii) Rajmeet Singh - Rs. 32 Lakhs. It was also submitted by the assessee that agreement with M/s. Singh Estate and Singh Construction was substituted with the development agreement of Raj Construction on 25.06.2014, wherein it is mentioned that the said partnership firm will enter into a separate agreement with the owner for the schedule of refund and other terms. From the Assessment Order, it appears that the Assessing Officer noticed that in the Corporation Bank the receipt from the Builder M/s. Singh Estate and Singh Construction is only to the tune of Rs. 14 Lakhs but not 33 Lakhs as claimed by the assessee. The assessee was also unable to explain the balance of Rs. 19 Lakhs and accordingly the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment order. 6. In the case of Harmeet Singh, the learned CIT has held in a similar manner that is to say, that the source of cash deposit in the Bank Account was not satisfactorily explained by the assessee, Harmeet Singh. He further noted that though it was claimed that the cash was arranged from friends and relatives, no identity/creditworthiness/genuineness was proved. In other words, learned CIT has categorically held that both the assessees were not able to prove the source of cash in the Bank Account. 7. Being aggrieved by the order passed by the CIT(A), both the assessees filed appeal before the learned ITAT who vide common order dated 27.08.2019 sustained the addition made by the AO and dismissed the respective appeals and thus the present appeals were filed before this Court under section 260A of the ACT. 8. Both these appeals were admitted by this Court and the following questions of law were framed:- T.A. No. 01 of 2020 Whether under the facts and circumstances and in law the learned Tribunal is justified in confirming the addition of about Rs. 16,50,000/- being the amount found credited in the Bank Passbook/Bank Statement of the Bank in the name ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SCC Online Bom. 6479 and submits that the Bombay High Court has held in this case that the entries in the Bank Passbook cannot be considered as entries in the books of the assessee, so as to involve Section 68 of the Act. 10. Learned counsel for the Revenue supported the impugned order and submits that no error has been committed by the Tax Authorities and/.or by the learned Tribunal. 11. Having heard learned counsel for the parties and after going through the documents available on record it is profitable to extract relevant part the order passed by the learned Tribunal. Para-10 of the impugned order is quoted hereunder: 10. After hearing both the sides and perusing the entire materials available on record, we observe from the order of the lower authorities that the assessee was unable to substantiate with credible evidence regarding cash deposit in the Corporation Bank on different dates. The issue has been examined in detail by the Assessing Officer and the Assessing Officer has also issued shown cause notice to the assessee regarding balance cash deposit of Rs.19 lakhs in the case of Harmeet Singh and Rs.16.50,000/- in case of Rajmeet Singh, but both the assessee cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ank account and computation of income before the Assessing Officer. Similarly, the assessee, Rajmeet Singh has submitted the copy of I.T. Return, sale deed, Bank Account and other details and held that without maintaining books of account, the balance-sheet/trading profit and loss account cannot be prepared. The learned Tribunal has further held that the bank accounts are maintained by the Bank on behalf of the Customer for transaction and the assessee also maintains his Bank Account in his ledger for transaction made with the Bank and Bank also maintains in Bank and visa versa. Learned Tribunal has further held that in the facts of the case book of account maintained by both the assessee is part of their financial statements which have been prepared in both the cases of the assessee and observing as above rejected the claim of the petitioner that only for the reason that pass book cannot be treated as books of account and the addition made under Section 68 is not sustainable. 13. It is true that pass book itself cannot be treated as books of accounts, but in the instant case as appears from the order that the assesssee has submitted balance-sheet, profit and loss account, co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by the Tax Authorities and/or the learned Tribunal in adding the amount not disclosed to the total income of the respective Assessee. For the reasons stated herein above, the judgments cited by learned senior counsel for the appellants has no bearing in the facts and circumstance of these cases. 16. Before parting it is necessary to observe that usually the matter would have been remitted to the A.O for mentioning of the correct provision and proceed in accordance with law; but admittedly, in the instant matter, the source of income in the case of both the assesses has not been proved; inasmuch as, both the assesses have failed to prove the identity/creditworthiness/genuineness of the creditors, who have given cash loan as claimed by them, thus we are of the view that remitting the cases to the A.O will be a futile exercise. 17. Having regard to the aforesaid discussions, both these appeals are dismissed and the questions of law are decided in favour of the Revenue. Consequently, the common impugned order dated 27.08.2019, passed by the Income Tax Appellate Tribunal, Ranchi Bench, Ranchi in I.T.A No. 189/RAN/2018 [Sri Rajmeet Singh Vs. ITO, Ward-2(3), Ranchi] and I.T.A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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