2014 (4) TMI 485

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..... cannot be said that the books indicated any amount in the nature of cash credit in the hands of the assessee as defined by Section 68 of the Act - the Tribunal found that the assessee acted as a conduit - He had no obligation to the investor, inasmuch as the investor came to him only to seek a proposed borrower or an introduction to him - The Tribunal rightly came to the conclusion that the provi .....

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..... e, however, the Tribunal erroneously held that the amount in question was not in the nature of the cash credit in the hands of the assessee as defined in Section 68 of the Income Tax Act, 1961. He submits that such conclusions would raise substantial questions of law because the facts denote that the entries made in the books of the assessee cannot be said to be without any corresponding obligatio .....

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..... acted as a conduit. He had no obligation to the investor, inasmuch as the investor came to him only to seek a proposed borrower or an introduction to him. That proposed borrower also indicated his name and interest in borrowing amount of the investor. The two persons were brought together and therefore beyond acting as conduit, the entries would not mean that the assessee had earned any credit or .....

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