9911796707
TMI Blog1979 (4) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... credits to the extent of ₹ 90,000 and 91,000 respectively were shown in the books of the assessee. The details whereof may be stated. 1962-63 Rs. (1) Gajanand Agarwal 10,000 on 13th Sept., 61 10,000 on 20th June, 63 20,000 (2) Pushker Lal Agarwal 10,000 on 29th Sept., 61 (3) Smt. Sita Devi 10,000 on 11th Oct., 60 20,000 (4) Smt. Jamuni Devi 20th Dec., 60 25,000 20th Dec., 60 25,000 90,000 1963-64 (1) Smt. Rukmini Devi 9th April, 62 31,000 (2) Smt. Sarda Devi 7th May, 62 30,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng those deposits. If the explanation is found not to be satisfactory, the amount of cash credits can be added to the income of the assessee. It has also been held that if a cash credit stands in third party's name and the assessee proves that the amount was actually deposited by that third party is not required of him further to prove from where that third party got the money. In such a case if the primary onus is discharged by the assessee, the onus shifts to the Department to prove that it was not actually the third party's money but it was the secreted income of the assessee himself. Cases have also opined that largely this is a question of fact and it depends upon the facts and circumstances of each case whether the addition to the income of the assessee on account of cash credit found in his account books is justified or not. If, however, the explanation of the assessee has been found to have been rejected on some surmises or conjectures then it has become a question of law as to whether the finding recorded by the Tribunal or the Departmental authorities is binding in a reference case. It has also been held that if the finding is recorded upon no evidence or is so pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the findings arrived at by the various authorities in relation to the cash credits in the account of the assessee were genuine credits and could thus not be charged to the income-tax to the income of the assessee. 7. Gajanand Agarwal is said to have advanced a sum of ₹ 30,000/- 20,000/- in the asst. yr. 1962-63 and 10,000/- in the asst. yr. 1963-64. The assessee relied on the following circumstances in support of his case that the cash credits were genuine credits. They are :' (a) the creditors were income-tax assessee; (b) they have confirmed the loans; and (c) in some cases affidavits have been filed. So far as Gajanand Agrwal is concerned the ITO held that the credits could not be said to be genuine credits for the following reasons:' (i) Gajanand claims to have started the business with the capital of 5,000/- rupees and has shown 100 per cent return on his capital in the first year itself, namely, 1957-58 which can not be accepted. (ii) Returns have been filed by Gajanand for five years, namely, 1955-56 to 1961-62 on one date i.e., 17th Sept., 1962, very close to the date of the credits as shown in the books of accounts of the assessee. (ii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sition so for as Pushker Lal Agarwal is concerned. The only material difference so far as his case is concerned is that we find that the number of members of the family is mentioned as five where as in the case of Gajanand the number of members of family is not mentioned. The second difference is that the claim of expenses in his case is from ₹ 300/- to 500/- per annum. It would thus appear that the case of Pushker Lal Agrawal that he had a capital of ₹ 28,000/- out of which ₹ 20,000/- was advanced has not been accepted because his explanation that income, if any, earned by him during the years, 1957-58 to 1962-63 was all saved by him was unreasonable as the expenses shown by him were impossible of acceptance. It would also appear from the order of the ITO that P. L. Agrawal was carrying on business even after the alleged advances. It follows that during the entire period from 1957-58 onward the capital initially employed was locked up in the business itself. Taking all these into consideration it cannot be said that any error or law was committed by the taxing authorities concerned in arriving at the conclusion to which they have arrived at in relation to the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he suddenly thought fit to invest with the assessee who happens to be her husband. (iii) It is most unlike that the wife will keep her money somewhere else but not invest the same at the earliest opportunity with her husband. (iv) That returns for six years were filed on one date, namely, 28th Dec., 1963. It is also observed in the order of the ITO that there is no documentary evidence to the prove that the assessee was doing pawn brokering business. The appellate order states that is support of the so called pawn brokering business no evidence what-so-ever is available. It is thus clear that the main basis for holding that the case of advance by Rukmani Devi cannot be accepted is the finding that there was no evidence to show that she was carrying on pawn brokering business. The other reasons which have been advanced by the ITO are only circumstances which may be taken into consideration provided that basic reasoning is correct. The learned counsel for the assessee pointed out that the material adduced before the ITO definitely showed that Rukmani Devi was carrying on independent business. He referred to the assessment order for the year 1958-59 (page 40 of the brief) whe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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