Law:

Section:

Section 68 of the Income-tax Act, 1961 - Cash credits - Assessment years 1988-89 to 1991-92 - Assessing Officer added loan amount to income of assessee under section 68 on ground that assessee failed to prove either identity of lender-company or its capacity to lend amounts allegedly borrowed by assessee - Before Commissioner (Appeals), assessee produced certificate of incorporation of lender together with their balance sheets and confirmation to effect that loans were in fact advanced to assessee - Commissioner (Appeals), on an evaluation of said evidence, came to conclusion that burden of proving existence of lender, its genuineness and capacity to advance amounts in question had been sufficiently proved and deleted additions made by Assessing Officer - Tribunal upheld findings of Commissioner (Appeals) - Whether no question of law arose out of Tribunal‘s order - Held, yes CASE REFERRED TO CIT v. Antarctica Investment (P.) Ltd. [2003] 262 ITR 493 (Delhi) [Para 3]. R.D. Jolly, Ajay Jha and Vishnu Sharma for the Appellant. Dr. Rakesh Gupta for the Respondent. ORDER 1. Since a common question arises for consideration in all these appeals, the same shall stand disposed of by this common order. 2. The assessee-company is engaged in the business of promoting Holiday Resorts. For the assessment years 1988-89, 1989-90, 1990-91 and 1991-92, it filed returns in which it declared loans allegedly borrowed from M/s. Pasupati Nath Commercial Pvt. Ltd., a company incorporated in Sikkim. The Assessing Officer called upon the assessee to prove the genuineness of these loans and eventually came to the conclusion that the assessee had failed to prove either the identity of the lender or its capacity to lend the amounts allegedly borrowed by the assessee. The amounts shown to have been borrowed by the assessee, on that finding, were added back to the income of the assessee under section 68 of the Income-tax Act and brought to tax. Aggrieved by the said orders, the assessee appealed to the Commissioner of Income-tax (Appeals) before whom the certificate of incorporation of the lender-company M/s. Pasupati Nath Commercial Pvt. Ltd. was produced together with their balance sheets…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492