9911796707
TMI Blog1995 (4) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 57,000 made by the AO under s. 68 of the IT Act being unexplained cash credits/squared up accounts in the names of 9 different parties. The AO noted the following short-term deposits for which he called upon the assessee to explain the nature and source thereof: . Rs. 1. Shri Johri Mal 5,000 2. Shri Ved Prakash 19,000 3. Shri M.L. Kansal 2,000 4. Shri S.P. Singhal 10,000 5. Smt. Gyanvati Sharma 5,000 6. Smt. Pratima Singhal 3,000 . 44,000 He also noted squared up cash accounts in the names of Shri Deepak Bansal Rs. 2,000, Shri V. Kumar Rs. 1,000 and Shri Budh Dev Prasad Rs. 10,000. Here again the AO called u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was bona fide and all the facts relating to the same material to the computation of its total income had been disclosed by it". The Tribunal recorded that the assessee had given explanation as also had filed evidence with regard to nature and sources of these loans/deposits and the same was required to be examined in the light of provisions of Expln. 1(B) to s. 271(1)(c). The Tribunal accordingly set aside the matter to the learned AAC for consideration afresh after giving an opportunity of being heard to the assessee. 2.2 In turn the learned Dy. CIT(A) issued notice of hearing to the assessee. He found that the assessee has not filed details of repayment of loans-mode of payment with dates. The learned Dy. CIT(A) accordingly took the v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that the judgment in the case of Prithpal Singh Co. was given prior to insertion of Expln. 1 to s. 271(1)(c), while the judgment in the case of Indo-Gulf Fertilizers Chemicals is with reference to the scope of the provisions of s. 143(1A) for the purpose of charging of additional tax. The learned Departmental Representative, therefore, supported the order of the learned Dy. CIT(A). 3. We have heard the learned representatives of the parties at length and have also perused the relevant record, including the paper book filed by the assessee before the learned Dy. CIT(A) as additional evidence. This appeal has to be decided in the context of order of the Tribunal dt.19th Jan., 1988, restoring the appeal to the learned AAC with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cating the sources of cash credit, i.e., business earnings and the amount of Rs. 10,000 having been advanced on different dates. 3.4 In the matter of Gyanvati Sharma, we find confirmation filed by her husband, Shri J.P. Sharma accepting that his wife deposited a sum of Rs. 5,000 with the assessee and it represented her savings over the years from the money she received from him from time to time. This is backed up by affidavit of Smt. Gyanvati Sharma, as also of her confirmation letter which contains full postal address also. 3.5 Smt. Pratima Singhal (Rs. 3,000): Her confirmation is filed. It contains her address as also backed up by affidavit, which also states the sources of the amount being received on maturity of her CDS Account No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king regular purchases from the assessee. He has confirmed to have deposited Rs. 4,000 on 25th Jan., 1979, but got it back between 5th Feb., 1979, and 12th Feb., 1979, when again he advanced a sum of Rs. 6,000 on 1st March, 1979, but got it back on 22nd March, 1979, due to non-supply of goods by the assessee. The assessee has also filed statement of account of Budh Dev Prasad in its books of accounts corroborating the version of Budh Dev Prasad. 4. From a plain reading of facts and evidence on record, it is, thus, clear that the assessee has been able to substantiate its explanation. We cannot ignore the request made by the assessee to the AO to summon the creditors under s. 131, for which the assessee was ready to bear the expenses. Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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