Law:

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Section 68 of the Income-tax Act, 1961 - Cash credit Where Tribunal had found that party had denied making impugned deposit with assessee and assessee had not been able to prove genuineness of deposit, addition on account of such deposit was justified Where certain deposits received by the assessee were treated as unexplained cash credit on ground that the assessee was not able to prove the genuineness of the deposits. Held that the Assessing Officer had found that one party denied the payment made towards share capital. In respect of another party, notice sent by the Assessing Officer to the address given by the assessee was returned unserved. Three instances alone had been taken into account and the statutory authorities right from the Assessing Officer had taken the view that before the Assessing Officer no material to prove the case had been placed and the Tribunal had also confirmed the same. In these circumstances, no substantial question of law arose from the Tribunal's order sustaining the addition. J. Balachander for the Appellant. JUDGMENT K. Raviraja Pandian, J.- The relevant assessment year is 1994-95. This appeal is filed against the order of the Income-tax Appellate Tribunal, Chennai, in I. T. A. No. 1898 of 2002 dated December 8, 2006. The facts culled out from the statement of facts stated in the memorandum of appeal, are as follows: For the assessment year 1994-95, initial assessment was framed on March 30, 2000, in terms of section 143(3) of the Act on the total taxable income at Rs. 1,29,82,250 as against the reported total taxable income at Rs. 1,28,290. A sum of Rs. 1,20,00,000 has been added as cash credit as well as security deposit in the assessment. Challenging the said order, the assessee filed an appeal before the Commissioner of Income-tax (Appeals) who, by his order dated January 15, 2001, set aside the assessment and remitted back the matter to verify whether the assessee had sources of income for the security deposit. In the reassessment, the Assessing Officer has accepted the most of the contribution relating to share capital and security deposits. However, in respect of a sum of Rs. 2,75,000, the Assessing Officer was of the…

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