2002 (7) TMI 789

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..... , the Tribunal was justified in sustaining two additions, on account unexplained cash credits of ₹ 1,05,000 and the tradition addition without applying a principle of Telescoping to cover up addition of cash credit from trading addition, being a settled preposition of law and goes to the root of the case? Whether, on the facts and in the circumstances of the case, the Tribunal has rightly refused to interfere to decide the ground of Telescoping only on the ground that it does not arise from the order of CIT(A), irrespective of the fact that ground was raised before CIT(A), and duly mentioned in the memo of appeal? Whether, the Tribunal has rightly decline to interfere to decide the ground of Telescoping to cover up addit .....

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..... n sales of ₹ 11,19,189. Before CIT(A), the assessee has also taken the ground that ₹ 1,05,000 added on account of cash credits may be deleted as addition has been already made on account of shortfall in stock and on account of trading addition. The Tribunal has considered the fact that the creditors were not produced and they are not having any means and they are not man of means, therefore, additions made by the authorities will however sustain. 3. Heard learned counsel for the parties. 4. The cases relied by learned counsel for the appellant were not related with the search. In the case in hand, it is a case of search, where various documents were found during search and on the basis of those documents, the books r .....

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..... ing result, no separate addition should be made on account of cash credits. 6. It is true that if cash credits are going out of the black money earned in the year, no separate addition should be made but the onus on the assessee to show that these cash credits are bogus and coming out of the black money earned this year. Nowhere assessee admits that these cash credits shown is the result of black money earned in this year or earlier year. In absence of any evidence supporting the claim of the assessee, we find no substance in the case of assessee. It is a case of search. The additions on trading results as well as on the cash credits are made on the material found at the time of search. In the result, we reduce the addition of cash cr .....

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