Additions as unexplained cash credit justified, as no books of a/c maitained.

Facts in Brief:

1. Assessee is an individual, deriving income from commission and interest.

2. Assessee filed return of income declaring total income.

3. In assessment, Assessing Officer observed that there were cash deposits to in assessee’s bank account.

4. Since the assessee has failed to offer any explanation regarding the source of cash deposits, AO treated same as unexplained cash investment and made addition in total income of assessee.

On appeal ITAT held,

5. This addition in question has been confirmed the CIT(A) in appeal on the ground that the assessee has failed to prove the genuineness of loans from the parties and creditworthiness of other depositors.

6. It is not in dispute that no such proof was furnished before the Assessing Officer but only affidavits from such depositors were produced before the First Appellate Authority which was not admitted by him on the ground that the same was not genuine as per the reasons recorded in the appellate order.

7. Therefore, in our opinion, the CIT(A) has rightly confirmed the addition of Rs.7,55,000/- as unexplained cash credit u/s 68 (of Income Tax Act, 1961) because no books of accounts are maintained by the assessee and there were no such details on record which can be verifiable. Thus, this ground of cross-objection is also dismissed.

8. In the result, the appeal filed by the Revenue as well as the Cross-objection filed by the Assessee, both are dismissed. 

Case Rerefernce - Income Tax Appellate Tribunal - Ahmedabad Sureshchand Mutha, Ahmedabad vs Assessee.