Case Law Details
Smt. Babbal Bhatia Vs ITO (ITAT Delhi)
An addition u/s 68 of the Act can only be made where any sum is credited in the books of the assessee maintained for any previous year. Thus, the very sine qua non for making of an addition u/s 68 of the Act presupposes a credit of the amount in the books of the assessee. We are not being oblivious of the settled position of law that the statutory provision has to be strictly construed and interpreted as per its plain literal interpretation and no word howsoever meaningful it may so appear can be allowed to be read into a statutory provision in the garb of giving effect to the underlying intent of the legislature. The scope and gamut of the aforesaid statutory provision is to be construed by according a plain meaning to the language used in section 68. We are of the considered view that a credit in the bank account of an assessee cannot be construed as a ‘credit’ in the books of the assessee for the very reason that the bank account of an assessee cannot be held to be ‘books’ of the assessee. The account of the assessee in the books of the bank is different from the books of the assessee.
FULL TEXT OF THE ITAT JUDGMENT
These three appeals by the assessee are preferred against three separate orders of the CIT(A) – 15. Delhi dated 10.02.2017 pertaining to A.Ys 2010-11 to 2012-13. Identical issues are involved in the captioned appeals, therefore, they were heard together and are being disposed of by this common order for the sake of convenience and brevity, though the quantum may differ.
2. The common grievance of the assessee in the impugned appeals relates to the additions made u/s 68 of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’ for short] in respect of the amounts of cash found to be deposited in the band accounts of the assessee.
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