Law:

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Section 68 of the income-tax act, 1961-Cash credits-Whether in view of supreme court decision in jamnaprasad kanhaiyalal v. cit tribunal was not justified in following delhi high court decision in rattan lal v. ito and in deleting additions to assessee's income under section 68-held, yes Facts Following the decision in Rattan Lal v. ITO [1975] 98 ITR 681 (Delhi), the Tribunal deleted additions to the assessee's income, holding that the assessee discharged the onus that lay upon it to prove the existence of creditors, their creditworthiness and the fact that they gave the money and that the department was, by virtue of the provisions of Finance (No. 2) Act 1965, under, which the voluntary disclosures were made, precluded from adding those very amounts as unexplained income of the assessee. On reference: Held The decision of the Delhi High Court in Rattan Lal's case (supra) was overruled by the Supreme Court in Jamnaprasad Kanhaiyalal v. CIT [1980] 130 ITR 244 in which it was held that section 24(3 ) of the Finance (No. 2) Act, 1965, was limited in its scope and it could not be invoked in assessment proceedings relating to any person other than the person making the declaration under the said Act so as to rule out the applicability of section 68. Accordingly, the Tribunal was not justified in deleting the additions made to the assessee's income. Case review Jamnaprasad Kanhaiyalal v. CIT [1981] 130 ITR 244 (SC) followed. Cases referred to Rattan Lal v. ITO [1975] 98 ITR 681 (Delhi) and Jamnaprasad Kanhaiyalal v. CIT [1981] 130 ITR 244 (SC). IT REFERENCE NO. 229 OF 1975. K.K. Wadhera and P.N. Mishra for the Respondent. JUDGMENT CHADHA, J. -This reference under section 256(1) of the Income-tax Act, 1961 ('the Act'), at the instance of the department, raises the following question: "Whether, on the facts and circumstances of the case, the Tribunal was legally Tight in holding that the assessee discharged the onus that lay upon it…

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