1973 (10) TMI 16

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..... er called " the Act ") on behalf of the revenue. The relevant assessment years are 1963-64 and 1964-65. The assessee is engaged in the business of hardware and paints. For defects found in the books of accounts the Income-tax Officer rejected the returns of both the years and made assessments to the best of his judgment. In the assessment year 1963-64, he found cash credits to the tune of Rs. 1, .....

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..... of the genuineness of the loans. The assessee failed to do so. The Income-tax Officer also noticed difference in G.I.R. numbers of the parties as furnished by the assessee and that found in the income-tax records of those parties. The Income-tax Officer, however, issued notices under section 131 of the Income-tax Act, 1961, to the creditors at the addresses furnished by the assessee. In obedience .....

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..... he Income-tax Officer apprised the assessee of his intention to include the impugned amount in the assessment, the assessee sagaciously eluded from leading in any evidence except those in the shape of confirmation letters and discharged hundi loans. The assessee's learned counsel submits that the identity of the creditors has been proved and since the creditors fled from Calcutta, their present wh .....

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..... tax Officer was influenced by the alleged confession made by the creditors. Although a gist of the confession was supplied to the assessee and the revenue did not give full-dress copy of the confessional statements, the genuineness of the loans could not be condemned as in the confessional statements the assessee was not implicated and those confessional statements were obtained in a proceeding. T .....

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..... in this case seems to have been reached on a consideration of the totality of the evidence placed on the record. Undoubtedly, it was open to the Appellate Tribunal to form an opinion that the explanation offered by the assessee was satisfactory in regard to the nature and source of the cash credits and as we are of the view that the Tribunal has, on an assessment of the entire material formed its .....

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