9911796707
TMI Blog2002 (8) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... g capacity is of no relevancy at all? - Whether the learned Income-tax Appellate Tribunal was justified in deleting the additions without rejecting the findings of the Assessing Officer with regard to the creditworthiness and genuineness of the transactions? - Whether the learned Income-tax Appellate rribunal was justified in not applying the ratio in the case of Shankar Industries v. CIT as decided by the court to the present matter?" - the appeal is partly allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee was also asked to file return for the block period, i.e., from 1986-87 to 1996-97. In response to that notice, the assessee filed the return for the block period also. During the course of scrutiny of the returns and relevant material available for assessing the income for the block period, the Assessing Officer made an addition of Rs. 1,11,000 on account of unexplained cash credits. It is noticed by the Assessing Officer that the assessee has shown loans from the following parties: ---------------------------------------------------------------------------------------- S. No. Name of depositors Date Amount ---------------------------------------------------------------------------------------- 1. Shri Jai Nath 22-4-1994 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y taxed that amount in the hands of the assessee. He place reliance on the decision of the Calcutta High Court in the case of CIT v. Korlay Trading Co. Ltd. [1998] 232 ITR 820. He further submits that even if the cash credits have been shown in the cash books, unless that has been disclosed as income in the relevant assessment years, that can be taxed in the block assessment year treating that income as undisclosed income of the assessee. We have considered the submissions of learned counsel and also perused the orders of the authorities below, i.e., the Assessing Officer and the Tribunal. The statements of cash creditors have been recorded, reasons have been given as to why the cash credits should not be treated as genuine. In appeal bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... retired employee and getting Rs. 2,000 as pension per month. He advanced Rs. 11,500 and confirmed the loan advanced. The next creditor is Jain Nath, who is a constable and his salary is Rs. 4,000 per month. He advanced Rs. 11,500 and confirmed the genuineness of the loan advanced by him to the assessee. The next creditor is Smt. Asha Sharma. She is the mother of the assessee. She advanced Rs. 21,000. She is a teacher. She has stated that she advanced a loan out of her savings and part of the amount has been withdrawn from the bank. The next creditor is Shri Virender Singh. He advanced Rs. 8,000. He has explained that his source of income is agriculture. He is in a joint family. He confirmed the loan of Rs. 8,000 advanced to the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
