1993 (4) TMI 48

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..... ssee made by the Income-tax Officer as unexplained cash credit ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in confirming the consolidated order of the Appellate Assistant Commissioner deleting the disallowance of Rs. 6,000 for each of the two years towards interest on the cash credits ?" The assessee is a trading Hindu undivided family doing business. The assessee's account for the assessment year 1974-75 showed cash borrowings of a total amount of Rs. 85,000 on six different dates from Messrs. S. K. Verma and Co., Dibrugarh. The Income-tax Officer required the assessee to adduce evidence regarding the borrowings. The assessee produced a letter of confirmation from the creditor. The assess .....

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..... show receipt of these payments. The assessment of the creditor's income for the three years was finalised and for the later two years assessment was made on the basis that Rs. 6,000 formed part of the creditor's income. Having regard to the failure of Askaran Verma to remember certain details regarding the payment, the failure of the assessee to produce Mahabir Prasad Soni for recording a statement and the fact that for the assessment year 1974-75, the total income of the creditor was Rs. 9,000 odd and the fact that Mrs. Santoshi Devi Verma did not have personal knowledge in regard to the creditor's transaction, the Income-tax Officer held that the assessee failed to prove that the creditor is a genuine firm and the entries were genuine .....

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..... reciate the evidence and circumstances and to arrive at a finding on such appreciation and differ with the conclusion of the statutory authority or the appellate authority. That the reference court on a consideration of the entirety of the circumstances would have been inclined to arrive at a finding different from the finding of the statutory authority or the appellate authority is no justification to entertain with such conclusion. We have referred to the various circumstances adverted to by the Income-tax Officer to hold that the entries in the assessee's books of account are suspicious and the suspicion was not removed by satisfactory evidence. We find that every one of these circumstances has been considered by the Commissioner (Appe .....

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