9911796707
TMI Blog2015 (8) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... lating to the assessment year 2009-10. 2. Following are the questions of law raised by the assessee in Tax Case (Appeals) Nos. 37 of 2014 and 38 of 2014. T. C. (A.) Nos. 37 and 38 of 2014 "1. Whether the Tribunal is right in law in holding that the cash credit amount of Rs. 1,00,00,000 assessed under section 68 and forms part of the total income cannot be considered as application of income for the purpose of section 11 for the assessment year 2009-10 because the same is not a donation ? 2. Alternatively, whether the Appellate Tribunal's interpretation of section 68 of the Income-tax Act, 1961, is correct in law ? 3. Whether the Tribunal's conclusion that the amounts advanced by the late Mr. Ebanesan to the assessee-appellant i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... responsible for collecting those loans and its repayment. Unfortunately, during the pendency of the assessment proceedings, the said general secretary passed away. The efforts to gather information on the loans taken in his name further proved futile and the assessee also denied having any knowledge about the whereabouts of the legal heirs of the ex-general secretary to offer any assistance in this regard. The statement was recorded from one Shri R. C. Samueal Swamikkan, employee of the assessee who stated that he had the knowledge about the loan credits received and accounted in the books of account as per the instruction of the then general secretary. He admitted that the loan received were not accounted in the name of G. Ebenesan and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nths. Towards the repayment of loan, the assessee had given post-dated cheques to M/s. India Cements. When the due date to repay the money approached and the banks had not released the loans, the said Ebinesan borrowed money from private persons and deposited the same in the bank and honoured the post-dated cheques issued to M/s. India Cements. On receipts of the bank loan, the loan amounts were repaid during the financial year. The assessee explained its inability to give the details on account of the sudden demise of Shri G. Ebinesan. The amount of loan availed of and accounted in the name of Shri G. Ebinesan was to the tune of Rs. 16,18,000. On a perusal of the submission it was seen that a sum of Rs. 16,18,000 was received from Shri G. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income-tax (Appeals) as well as the Assessing Officer that the assessee had not in any manner let in any evidence to show that the amount of Rs. 1 crore received from M/s. India Cements was repaid by further availing of loan from various parties. It is no doubt true that the person who had taken the said loan, expired during the course of the assessment proceedings. Consequently, the names could not be furnished. Nevertheless it is a matter of record that the assessee had not produced any material by way of any resolution passed to avail of such loan to discharge the liability. Thus, in the absence of any material furnished by the assessee, the only other course available to the Assessing Officer was to consider this income as income fro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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