Asha Soni Vs DCIT (ITAT Raipur)
In a significant ruling, the Income Tax Appellate Tribunal (ITAT) Raipur has quashed an addition of Rs. 35 lakhs made under Section 68 of the Income Tax Act against assessee Asha Soni. The ITAT determined that the addition for unexplained cash credit was “bad in law” because Soni, whose income primarily derived from salary, house property, and other sources, did not maintain books of accounts, nor was she legally required to do so. The ruling emphasized that entries in a bank passbook cannot be treated as an assessee’s books of accounts for the purpose of invoking Section 68. The Tribunal, in its decision pronounced on January 10, 2024, underscored the importance of adhering to the precedent set by the Bombay High Court in the case of Bhaichand N. Gandhi, a ruling that was not considered by the lower authorities. This decision by the ITAT Raipur aligns with its previous ruling in the case of Kuldeep Jiwan Mahant and effectively allows Asha Soni’s appeal, setting aside the addition initially affirmed by the CIT(A).
FULL TEXT OF THE ORDER OF ITAT RAIPUR
The captioned Appeal is filed by the assessee against the order of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2017-18 dated 25.03.2022, which in turn resulted from the order of Ld. Income Tax Officer, Circle-1(1), Bilaspur, under section 143(3) of the Income Tax Act, 1961 dated 26.12.2019.
