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TMI Blog2024 (10) TMI 598X X X X Extracts X X X X X X X X Extracts X X X X ..... notices, a memo was issued to him to show cause why assessment be not completed ex-parte under Section 144 of the IT Act as per the information and documents available on record which was served to him, but it also remained unanswered and again it was not responded by the appellant / assessee. Finding no way, the Assessing Officer called information under Section 133 (6) of the IT Act from the Manager, State Bank of India, Branch: Bacheli in response to which the Bank had submitted copy of the statement of the bank account of the assessee on 20-6-2016 and on verification of the said bank account, it was revealed that the assessee had made cash deposits of Rs. 11,44,070/- in his Savings Bank Account No. 30524245488 maintained by him in the said branch and in that case, onus was lying with the assessee to substantiate his case with evidence regarding source of income for making cash deposits in the said bank account. Since the assessee failed to participate in the assessment proceedings and furnished no explanation and also failed to explain the source of above cash deposit, the assessment was completed ex-parte under Section 144 of the IT Act and Rs. 11,44,070/- was treated as the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and ITAT are perverse and all the authorities have erred in upholding addition under Section 68 read with Section 69A of the IT Act in absence of books of account being maintained by the appellant herein / assessee specifically when there was no statutory obligation on the appellant / assessee to maintain books of account as per Section 44AA of the IT Act and further erred in upholding addition under Section 68 read with Section 69A to the appellant's/assessee's income for the Assessment Year 2012-13 as the parameters to make addition under the aforesaid provisions are different / as the condition(s) to attract addition under the aforesaid provisions are different. As such, substantial question of law arises for consideration in this appeal. 6. We have heard learned counsel for the appellant on the question of admission of this tax case and considered his submissions made herein-above carefully and minutely as well. 7. A careful perusal of the record would show that an amount of Rs. 11,44,070/- in the savings bank account maintained by the appellant herein / assessee was found deposited by the appellant to which the Assessing Officer issued number of notices seeking his ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the income of the assessee of that previous year, and if the explanation offered by the assessee about the nature and source of sums found credited in the books is not satisfactory, in such cases, there is, prima facie, evidence against the assessee, viz., the receipt of money, and then the burden is on the assessee to rebut the same, and if he fails to rebut, it can be held against the assessee that it was a receipt of an income nature. 9. In the matter of Commissioner of Income Tax v. P. Mohanakala AIR 2007 SC 2116, their Lordships of the Supreme Court considered the nature and scope of Section 68 of the IT Act and laid down when and in what circumstances Section 68 of the IT Act would come into play by observing as under: - "15. The question is what is the true nature and scope of Section 68 of the Act? When and in what circumstances Section 68 of the Act would come into play? That a bare reading of Section 68 suggests that there has to be credit of amounts in the books maintained by an assessees; such credit has to be of a sum during the previous year; and the assessees offer no explanation about the nature and source of such credit found in the books; or the explanation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... down in Chuharmal (supra) was followed by the Supreme Court with approval in the matter of Commissioner of Income Tax, Salem v. K. Chinnathamban (2007) 7 SCC 390 and it has been held that where a deposit stands in the name of a third person and where that person is related to the assessee then in such a case the proper course would be to call upon the person in whose books the deposit appears or the person in whose name the deposit stands should be called upon to explain such deposit and further held that the onus of proving the source of deposit primarily rested on the persons in whose names the deposit appeared in various banks, and observed as under: - "7. Where a deposit stands in the name of a third person and where that person is related to the assessee then in such a case the proper course would be to call upon the person in whose books the deposit appears or the person in whose name the deposit stands should be called upon to explain such deposit. In the present case, there is no evidence recording registration of the firm. In the present case, books of accounts are not properly maintained. In the present case, there is no explanation regarding the source of invest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 68 of the IT Act, in the absence of any cogent evidence and finding the explanation furnished by the assessee not satisfactory, their Lordships of the Supreme Court held that the concurrent finding of the lower authorities would not give rise to a substantial question of law, and observed as under: - "22. Examined on the touch-stone of the afore-noted legal principles, we are of the opinion that in the instant case the High Court has correctly concluded that no substantial question of law arises from the order of the Tribunal. All the authorities below, in particular the Tribunal, have observed in unison that the assessee did not produce any evidence to rebut the presumption drawn against him under Section 68 of the Act, by producing the parties in whose name the amounts in question had been credited by the assessee in his books of account. In the absence of any cogent evidence, a bald explanation furnished by the assessee about the source of the credits in question viz., realisation from the debtors of the erstwhile firm, in the opinion of the assessing officer, was not satisfactory. It is well settled that in view of Section 68 of the Act, where any sum is found credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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