Law: Income Tax Act, 1961

Section: 256

Income tax-----Reference Cash credits Finding of Tribunal that assessee was not able to prove genuineness of cash credits was a finding of fact No question of law thus arises for reference. JUDGMENT K. S. PARIPOORNAN, J. The petitioner is a firm. It is an assessee to Income tax. It is engaged in business as commission agents and wholesale dealers in tea. We are concerned with the assessment year 1979 80. More than one return was filed by the petitioner for the assessment year. The Income tax Officer found huge cash credits in the names of 77 parties. He further found that the petitioner/assessee failed to give correct and complete addresses of the said persons and most of the credits were not genuine. The assessments were made for two different periods April 1,1978,to September 15, 1978, and September 16, 1978, to March 31, 1979, in view of the retirement of a partner. The peak credit was found to be Rs. 6,68,268. On this basis, additions were made. In appeal, the Commissioner of Income-tax (Appeals) sustained the additions in the sums of Rs. 5,00,000 Rs. 2,00,000 was treated as income for the first period and Rs. 3,00,000 was treated as income for the second period. The total sum of Rs. 5,00,000 replaced the addition of Rs. 4,00,287 for the first period and Rs. 2,76,028 for the second period added as unexplained cash credits of the petitioner/assessee under "other sources" made by the Income tax Officer. The Revenue as well as the petitioner/assessee filed appeals before the Income tax Appellate Tribunal. Both the appeals were disposed of by a common order dated March 30, 1985, by the Appellate Tribunal. The Appellate Tribunal held that the total addition of Rs. 5,00,000 Rs. 2,00,000 for the first period and Rs. 3,00,000 for the second period sustained by the Commissioner of Income tax (Appeals) does not merit any interference. Similarly, the Appellate Tribunal held that the order of the Commissioner of Income tax (Appeals) limiting the additions to the total sum of Rs. 5,00,000 did not require any interference. The Appellate Tribunal held that the correct and complete addresses of the 77 parties were not available in the books of account. Even though the…

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