Bank Passbook/Bank Statements Couldn’t Be Treated as Book Maintained by Assessee | ITAT Deletes Sec. 68 Additions

Case Details: Kuldeep Jiwan Mahan v. ITO - [2023] 157 taxmann.com 532 (Raipur-Trib.)

Judiciary and Counsel Details

• • Ravish Sood, Judicial Member & Arun Khodpia, Accountant Member
  • R.B. Doshi, CA for the Appellant.

Facts of the Case

The assessee’s case was reopened for the reason that cash was found to be deposited in his bank account. Subsequently, the Assessing Officer (AO) made an addition under section 68 on account of such cash deposited.

On appeal, the CIT(A) confirmed the addition made by the AO. The matter reached before the Tribunal.

ITAT Held

The Tribunal held that the addition under section 68 was in contradiction with the settled position of the law as decided in the case of CIT v. Bhaichand N. Gandhi [1982] 11 Taxman 59 (Bombay) wherein it is observed that a bank pass book or bank statement cannot be considered to be a ‘book’ maintained by the assessee for section 68.

Therefore, based on the legal premise mentioned above, the addition made under section 68 was liable to be deleted.