9911796707
|
Home
Issues:
- Assessment of genuineness of cash credit of Rs. 35,000 in the assessment year 1976-77 under the Income-tax Act, 1961. Analysis: The case involved a cash credit of Rs. 35,000 in the name of a firm, which was examined by the Income-tax Officer. The firm partner initially stated it was a havala entry with no money transferred to the assessee. The assessee produced an affidavit from the partner later, claiming the credit was genuine. However, the partner's statements contradicted each other. The Income-tax Officer treated the amount as income from undisclosed sources, which was upheld by the Appellate Assistant Commissioner. The Appellate Assistant Commissioner considered the cash balance and the partner's history of havala entries. Despite other parties surrendering similar amounts as income, the partner failed to show the credit as his actual income, leading to the upheld decision. The Income-tax Appellate Tribunal also found no reason to doubt the partner's initial statement and noted the absence of other firm partners to support the claim. The Tribunal dismissed the appeal, upholding the previous decisions. The burden of proving the credit's genuineness fell on the assessee. The court emphasized the need for convincing material to establish the credit's authenticity. Despite the partner's conflicting statements and lack of substantial evidence, the court upheld the Tribunal's decision that the assessee failed to provide convincing proof of the credit's genuineness. The court's role was advisory, not appellate, and the decision was supported by various reasons and circumstantial evidence. In conclusion, the court ruled in favor of the Revenue, stating that the assessee did not bring sufficient evidence to establish the cash credit's genuineness. The reference was answered in favor of the Revenue, with no costs imposed.
|
