The case of the assessee was reopened u/s 148 on the basis of the AIR information that the assessee had deposited cash to the tune of Rs. 10,46,000/- in his ICICI Bank Account. The assessment was completed under section 147 r.w.s 144 of the Act, with an addition of Rs. 7,37,948/- by taking into consideration peak amount date 24.12.2017 on account of cash deposited in ICICI bank.
Aggrieved assessee filed an appeal before the CIT(A). The CIT(A) upheld the order of assessment. Being dissatisfied the assessee filed an appeal before the Income Tax Appellate Tribunal.
The assessee representative submitted that, as such the primary requirement for invoking the provisions of Section 68 is maintenance of books of accounts. However, in the present case, the assessee has not maintained any books of accounts and as such the provisions of Section 68 of the income Tax Act are not at all applicable.
The Counsel further argued that the AO has failed to appreciate that the applicant has received Rs 7,50,000 and Rs 9,00,000/- estate as his share vide cheque dated 04-04-2017 and 26-06-2017 on which tax has duly been paid already.
The department representative Ravinder Mittal vehemently argued and relied on the orders of revenue authorities.
It was observed by the Income Tax Appellate Tribunal ( ITAT ) bench of Judicial Member Anikesh Banerjee and Accountant Member Dr. M L Meena that “Mere possession of pass book cannot be treated as books of accounts.”
It was thus also held that the application of Section 68 is uncalled for the assessee and that the cash deposited by assessee is income from agriculture which does not come under purview of the taxable income.
It was thus ruled that, “The opening balance of cash was also not considered during determination of peak by the ld. AO. We set aside the order of revenue authorities. So, the entire addition amount to Rs. 737,948/- is quashed.”
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