Law:

Section:

Section 68 of the Income-tax Act, 1961 - Cash credits - Assessment year 1962-63 - Assessee was found to have taken loan form one 'TS' which could not be explained satisfactorily - Said amount was treated as assessee income from undisclosed sources - Tribunal looked into certificate from creditor and found that there was no statement that he was an income-tax assessee or that number stated therein was number of his assessment file or that signature in document was that of alleged creditor - Tribunal, therefore, confirmed addition - Whether there was enough material before Tribunal, to come to conclusion that amount in question was income of assessee from undisclosed sources and, therefore, order of Tribunal was justified - Held, yes FACTS During the assessment it was found that the assessee had obtained three cash loans one of which was for a sum of Rs. 10,000 from one 'TS'. In support of this entry the assessee merely filed a copy of his account with 'TS', certified by the latter. The ITO treated the amount as the assessee's income from undisclosed sources and disallowed the interest claimed. In appeal the AAC asked the assessee furnish the latest known address for verification but the assessee then submitted that such address was not available. The AAC confirmed the addition. On second appeal, the Tribunal looked into the certificate from the creditor and forword that there was no statement from the creditor that he was an assessee under the Act or that the number stated in the document was the number of his assessment file or that the signature contained in the document was the signature of the alleged 'TS'. The Tribunal rejected the appeal. On reference: HELD There was enough material before the Tribunal to come to the conclusion that the said sum of Rs. 10,000 was the income of the assessee from undisclosed sources. Under section 68 it was for the assessee to furnish satisfactory explanation in respect of the entry. The assessee had failed to prove the said entry to be a loan or to furnish sufficient evidence to explain the same. Therefore, the findings of the Tribunal that the sum of Rs. 10,000 with interest thereon was the assessee income from undisclosed…

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