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2007] 291 ITR 397 HIGH COURT OF DELHI Commissioner of Income-tax v. R.N. Kumar* MADAN B. LOKUR AND V.B. GUPTA, JJ. IT APPEAL NO. 1500 OF 2006 JANUARY 24, 2007 Section 68 of the Income-tax Act, 1961 - Cash credits - Assessment year 1980-81 - Assessee received certain loan amounts through one 'R', a hundi broker - Assessing Officer made addition of said cash credits to income of assessee on ground that it could not establish identity, genuineness and creditworthiness of creditors - Whether since loans were not taken directly by assessee, helplessness shown by him to produce those parties or tell their present whereabouts could not be termed as non-cooperation on part of assessee, particularly when matter was 20 years old and, therefore, Assessing Officer was not justified in making impugned addition - Held, yes FACTS For the relevant assessment year, the original assessment of the assessee had been completed. Thereafter, on receipt of information from the ADI, the Assessing Officer reopened assessment and made reassessment by making addition on account of certain cash credits appearing in the books of assessee. The reason stated for addition was that one 'R', a hundi broker, through whom those amounts had been received by the assessee, had indulged in 'Hawala' transactions and those persons were not produced to support the fact of making advance to the assessee. On appeal, the Commissioner (Appeals) upheld the said addition. On second appeal, the Tribunal did not find any justification in sustaining the addition and, accordingly, deleted the same. In appeal, the revenue contended that the order of the Tribunal was contrary to the facts and law since the Assessing Officer had specifically carried out the enquiry and in spite of various opportunities given, the assessee could not establish the identity, genuineness or creditworthiness of the creditors. HELD It was clear from the records that the Assessing Officer did not carry out the directions given by the Tribunal for making assessment in the case. In the original assessment, the assessee had established the credits and the Assessing Officer being satisfied, did not make any addition thereof. The assessee did…

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