Related under section 68/69
This query is : Resolved
07 September 2009
Hello Experts
Facts of case
one person has only rental income file return every year on regular basis Pay tax on Net Appox. Rs 3,50,000/- income
The assessee'wife is partner in partnership firm.she withdraw cash amount Rs 21,50,000/- from her partnership bank account for purchases of land in jaammu.
But she has not obtain the land due to some reasons and same returned (21,50,000/-) amount is deposit in her husband bank account by mistake.
The assessing officer made addition rs 21,50,000/- under section 68 on basis of bank pass book.
my query :-
1. tell me about section 68 is applicable on tranction made by husband & wife.
2. i think Section 68 is applicable on those person who maintain the books. tell me about "BOOKS MEANING" also. kind ur information assessee has only rental income.
Please give me any case reference also.
Thanks in advance.....
Facts of case
one person has only rental income file return every year on regular basis Pay tax on Net Appox. Rs 3,50,000/- income
The assessee'wife is partner in partnership firm.she withdraw cash amount Rs 21,50,000/- from her partnership bank account for purchases of land in jaammu.
But she has not obtain the land due to some reasons and same returned (21,50,000/-) amount is deposit in her husband bank account by mistake.
The assessing officer made addition rs 21,50,000/- under section 68 on basis of bank pass book.
my query :-
1. tell me about section 68 is applicable on tranction made by husband & wife.
2. i think Section 68 is applicable on those person who maintain the books. tell me about "BOOKS MEANING" also. kind ur information assessee has only rental income.
Please give me any case reference also.
Thanks in advance.....
07 September 2009
1) Section 68 is not applicable in your case:
As per section 68 of the Income Tax Act, 1961, where any sum is found credited in the books of an assessee maintained for any previous year and the assessee offers no explanation about the nature and source thereof, or, the explanation offered is not satisfactory in the opinion of the AO, the sum so credited may be charged as income of the assessee for that previous year.
From the above it is clear that if the assessee does not offer satisfactory explanation, only then section 68 can be invoked by the AO.
The above provisions can be summed up as under:
The burden of proof is on the assesee u/s 68. In this regard he shall establish that -
a) the identity of the creditor is established;
b) the capacity of the creditor to advance the money is beyond doubt; and
c) the transaction is genuine.
If the above is satisfactorily explained to the AO, then, the credit amount cannot be charged as income u/s 68.
2) Books includes Bank Pass Books...and it is assumed that the assessee maintains this book.
As per section 68 of the Income Tax Act, 1961, where any sum is found credited in the books of an assessee maintained for any previous year and the assessee offers no explanation about the nature and source thereof, or, the explanation offered is not satisfactory in the opinion of the AO, the sum so credited may be charged as income of the assessee for that previous year.
From the above it is clear that if the assessee does not offer satisfactory explanation, only then section 68 can be invoked by the AO.
The above provisions can be summed up as under:
The burden of proof is on the assesee u/s 68. In this regard he shall establish that -
a) the identity of the creditor is established;
b) the capacity of the creditor to advance the money is beyond doubt; and
c) the transaction is genuine.
If the above is satisfactorily explained to the AO, then, the credit amount cannot be charged as income u/s 68.
2) Books includes Bank Pass Books...and it is assumed that the assessee maintains this book.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Unregistered suppliers utility
- Difference between Date of Payment and Date of Deduction?
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- ITDS U/S.194T of Firm
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- Cash balance limit and property purchases limit
- Journal entry of busniess expenses
- GST Rate for Catering Services
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
