Case Law Details
Shri Rajesh Jain Vs ITO (ITAT Indore)
The issue under consideration is whether the addition made by AO under section 68 in respect of the deposit of business of wife in their joint bank account is justified in law?
In the present case, the assessee maintains a joint bank account with his wife to deposit the rental income of the assessee and his wife. During the year he deposited business income of wife in that account. The Assessing Officer treated the deposit of cash in Vijaya Bank Account, as undisclosed income under section 68 of the Income Tax Act, 1961.
ITAT states that, the assessee submitted copy of service tax registration relating to Coaching Institute. The assessee also submitted that his wife is a taxpayer having source of income from Coaching Institute, rental income and bank interest and regularly files income tax return. Copy of ITR, Balance sheet and profit and loss account was also filed. The assessee also explained that rental income of the assessee and his wife is deposited in this saving account and his wife is at liberty to withdraw or deposit from her bank as per her requirement. On consideration of these facts and circumstances, ITAT states that it is wrong to assume that the assessee is sole owner of funds in the said bank account. Therefore, ITAT direct the AO to delete the addition made u/s 68. Hence, appeal filed by the assessee is allowed.
FULL TEXT OF THE ITAT JUDGEMENT
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