2003 (12) TMI 18

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..... /Shri Mahavir Prasad, Banwari Lal and Subhash Kumar Parekh and sustaining the disallowance of Rs. 41,200 being the interest on the aforesaid loans? Tribunal has come to the conclusion that the explanation furnished by the assessee is not satisfactory, inasmuch as, the three creditors were persons of small means; there was no evidence of the availability of the amount of Rs. 3 lakhs with them on th .....

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..... e assessee under section 68 of the Act, for failure on their part to prove satisfactorily the genuineness of the cash credits of Rs. 1 lakh each found credited in their books of account in the names of Mahavir Prasad, Banwari Lai and Subhash Kumar Parekh. According to the appellant, the order of the Tribunal involves the following substantial questions of law: 1. Whether the Income-tax Appella .....

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..... s vitiated because the Tribunal has disregarded the relevant material placed on record by the assessee. It is urged that though the statements of the three creditors were recorded even on repeated requests of the assessee, the statements of those who had provided funds to the creditors, had not been recorded. We are unable to persuade ourselves to agree with learned counsel. Section 68 of the Ac .....

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..... acity of the three creditors to advance the money to him is vitiated because the same has been arrived at after improperly rejecting the evidence adduced by the assessee. In the present case, on a consideration of the material placed on record by the assessee, which included the statements of the said three creditors, the Tribunal has come to the conclusion that the explanation furnished by the .....

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..... ; they were living with their families in small houses; they had no bank accounts and as substantial part of the amounts in question had come in their hands by way of gifts from some other persons. In the light of these statements, we are unable to hold that the aforenoted findings, recorded by the Tribunal, are based on no evidence or are based on partly relevant and partly irrelevant evidence .....

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