Law:

Section:

Section 68 of the income-tax Act, 1961-Cash credits-Cash credits in assessee's books in his wife's name explained as sale proceeds of ornaments, being received by them on their marriage ITO not considered vouchers showing sale of ornaments and list showing articles received by them on their marriage-He added said cash credits to assessee's income-Tribunal, without referring to evidence produced and acting on probabilities, upheld ITO's order-Whether tribunal justified-Held, on facts, no Facts In the course of assessment proceedings for the assessment year 1952-53, the ITO noticed a cash credit in the assessee's books in the name of the assessee's wife. The assessee explained the said cash credit as representing the sale proceeds of ornaments received by them at the time of their marriage. The assessee corroborated his aforesaid statement by producing the necessary vouchers showing the sale of ornaments and a list showing the articles received by her wife. The ITO, however, did not ascertain the truth or otherwise of the list produced by the assessee by calling either the assessee or his wife or any of the persons mentioned therein. He rejected the assessee's claim and added the said amounts to the income of the assessee by observing that it was unbelievable that the assessee could have disposed of the ornaments of her wife which he had received as presents at the time of their marriage, just nine months after the marriage. The AAC allowed the assessee's appeal against the impugned addition on the basis of details and documentary evidence of sale produced by the assessee. The Tribunal, however, restored the ITO's order, without even referring to the evidence produced by the assessee, merely acting on probabilities. It observed that if old ornaments had been given by the parents, there must have been some sentimental value attached to them as heirloom which the young wife would cherish fondly to pass on to her own daughters in time. The Tribunal also rejected the assessee's application for reference to the High Court, and the High Court also rejected the further application. On appeal, the Supreme Court held that the of the Tribunal suffered from manifest…

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