9911796707
TMI Blog1990 (1) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... s and in the circumstances of the case and on a correct and true interpretation, the Appellate Tribunal was justified in law in taking the view that the existence of the presumption available under section 132(4A) of the Income-tax Act, 1961, did not do away with the burden which the assessee had of establishing the requisites of cash credits under section 68 of the Act ? (3) Whether, on the facts and in the circumstances of the case and in view of the answers to questions Nos. 1 and 2, the Appellate Tribunal was justified in law in confirming the additions sustained by the Appellate Assistant Commissioner of Income-tax in respect of the various creditors for the assessment years 1972-73 to 1976-77 ?" The facts relevant for answering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t some amounts had been advanced by the assessee and that the assessee had repawned ornaments to various individuals for obtaining loans from them at a lower rate of interest. The Income-tax Officer accepted all the credit entries save 20 credits specified in the order of the Appellate Assistant Commissioner. These 20 credit entries were rejected by the Income-tax Officer as unexplained. The details of these 20 entries which were treated by the Income-tax Officer as unexplained have been given in the order of the Income-tax Appellate Tribunal and it is unnecessary to elaborate the same in view of the limited questions which have been referred for our opinion the amounts represented by these credits were added by the Income-tax Officer to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner, accordingly, ordered the deletion of such credits from the income as assessed by the Income-tax Officer. The assessee took the matter by way of further appeal before the Income-tax Appellate Tribunal. The Tribunal endorsed the view of the Appellate Assistant Commissioner in regard to the extent and nature of the presumption contemplated under section 132(4A) as well as the applicability of the provision under section 68. The Tribunal observed that the presumption arising under section 132(4A) was in the first place not irrebuttable, and, secondly, it extends only to the identity of the person making the entries or the correctness of the entries, etc. It, however, did not have the effect of excluding or overriding the application o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mption may also be made as to the correctness of the contents of the books of account so seized. So also the signature and every other part of the books of account may be assumed to be in the handwriting of the person by whom it is purported to have been written. This presumption cannot, however, have the effect of excluding section 68 when regular assessment is made in regard to the income of the person from whose possession those books of account were seized under section 132. Section 68 provides that where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pshot of the foregoing discussion is that the presumption arising under section 132(4A) does not override or exclude section 68, that is, it does not obviate the necessity to establish by independent evidence the genuineness of the cash credits under section 68. Further, the presumption under section 132(4A) is available only in regard to the proceedings for search and seizure and for the purpose of retaining the assets under sub-section (5) of section 132 and their application under section 132B of the Act. The presumption is relevant and limited only to the summary adjudication contemplated under sub-section (5) of section 132. Neither more nor less. In the result, we answer the first question in the affirmative, in favour of the Reven ..... X X X X Extracts X X X X X X X X Extracts X X X X
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