Deposit of Business Income of Wife in Joint Bank Account can’t attract Addition under section 68: Income Tax Appellate Tribunal

  • The assessee is having a joint bank account with his wife’s name to deposit the rental income from the property of the assessee and his wife.
  • During the relevant assessment year, the Assessing Officer treated the deposit of cash in Bank Account, as undisclosed income under section 68 of the Income Tax Act, 1961.
  • Objecting to the addition, the assessee contended that the said bank account is a joint account of the assessee with his wife and his wife runs a Coaching Institute and as a proof of business the assessee submitted copy of service tax registration.
  • The assessee also submitted that his wife is a taxpayer having a source of income from Coaching Institute, rental income, and bank interest and regularly files an income tax return. Copy of ITR, Balance sheet, and profit and loss account was also enclosed.
  • Allowing the above contentions, the Tribunal that the rental income of the assessee and his wife is deposited in this savings account and his wife is at liberty to withdraw or deposit from her bank as per her requirement.


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