Section 68 of the Income-tax Act, 1961—Cash credit—Even if the assessee does not maintain any books of accounts but the amount is deposited in the bank account of assessee, which remains unexplained the addition could be correctly made under section 68.

Facts: on the facts of the case and as per law, the learned CIT (A) or in upholding and enhancing the addition of rupees to 450000/- as cash credit under section 68 of the income tax act, 1961 in the returned income in respect of cash deposited into the bank account of cash received as advance for sale of land, gifts and loan duly accept accepted by the intended purchasers, donors and creditors in their statement recorded on oath before the AO during the course of assessment proceedings without appreciating that section 68 cannot be invoked where the books of accounts are not maintained by the assessee.

Held, that once the three basic conditions of identity of persons, relationship with person, or occasion with respect to the gift are proved, there is no reason to doubt the genuineness of the gifts. Even if the assessee does not maintain any books of accounts but the amount is deposited in the bank account of assessee, which remains unexplained the addition could be correctly made under section 68, thus, the cash deposited by assessee in his bank account is also covered under section 68 of the income tax act. - JAGDISH PRASAD SHARMA V/s ITO - [2020] 182 ITD 246 (ITAT-DELHI)