9911796707
TMI Blog2001 (4) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... Regarding the source of the loan , it was stated by her that she was doing stitching work and also earning income by way of teaching the method of stitching to the girls and in that way her income was approximately Rs. 1,500 per month. The Assessing Officer found out that she opened a Bank account on 25-3-1988 by making a cash deposit of Rs. 101, in which another cash deposit of Rs. 50,000 was made on 29-3-1988. The Assessing Officer did not believe the creditworthiness of the creditor on the grounds that firstly she had expressed her inability to produce any evidence in support of earning income from stitching work and secondly that she being a house-wife, was unlikely to have sufficient time to lend to other affairs and to be able to e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee as his income from undisclosed sources by applying the provisions of section 68. 3. At the stage of the hearing of this appeal, the ld. counsel for the assessee strongly contended that the loan under consideration was paid by Smt. Balbir Kaur through an Account payee cheque drawn on Allahabad Bank. It has also been pointed out that not only the confirmation certificate from the creditor showing her Income-tax file No. was duly furnished to the Assessing Officer, but also the creditor herself appeared before the Assessing Officer and confirmed the loan transaction in her deposition. The ld. counsel for the assessee relied on the judgment of the Hon ble Supreme Court in the case of CIT v. Orissa Corporation (P.) Ltd. [1986] 159 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer and furthermore the loan was taken by the assessee through an account payee cheque. So far as the creditworthiness of the creditor is concerned, although there may be some point of suspicion about the earning of income from stitching work by Smt. Balbir Kaur, the fact stands that her income over a number of past years stands accepted by the department, al beit in assessments made under section 143(1). There is no material on record to show that any of those assessments was cancelled by the CIT under section 263. Hence, the Balance-sheets of the creditor filed in connection with her assessments in the past years as well as the availability of cash as shown therein have got to be considered as accepted. Again, since the creditor hers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the money belongs to the assessee, the said money should be considered as having been available with the assessee as on the last date of the immediately preceding year, i.e., 31-3-1988. So far as the source of the cash credit appearing in the books of the assessee by way of loan in November, 1988 is concerned, the source is clearly explained as money brought forward from the earlier year. Hence, the cash credit in November, 1988 cannot at all be treated as unexplained and no addition can be made in the assessment of the assessee for assessment year 1989-90, on this account. From this angle also, the addition, so far as atleast this assessment year is concerned, cannot at all stand. 6. Hence, we reverse the orders of the lower authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X
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