Law:

Section:

Section 68 of the Income-tax Act, 1961 - Cash credits - Assessment year 1988-89 - Assessee-firm, engaged in business of sale of agricultural commodities and commission agency, filed its return - Assessing Officer, while completing assessment, disallowed deposits made by certain persons for reason of same being unexplained credits - He also made addition on account of profits earned from purchase and sale of sarson for reason of same being unexplained - Tribunal upheld disallowances/additions on ground that assessee had failed to discharge its onus of proving creditworthiness of depositors and genuineness of deposits made by them - Whether findings recorded by authorities were essentially findings of fact based on appreciation of evidence and no question of law arose therefrom, which required determination by High Court - Held, yes FACTS The assessee-firm, engaged in the business of sale of agricultural commodities and commission agency, filed its return. In the assessment order passed under section 143(3), the Assessing Officer disallowed the deposits made by 'B', 'P', 'PM' and 'R' for the reason of same being the unexplained credit and also interest thereon. He also made addition in respect of the undisclosed profit earned in the purchase and sale of sarson. He further made additions on account of the alleged excess shortage in gram and barley accounts and low household withdrawals. The Commissioner (Appeals) upheld the additions and disallowances. He, however, quashed the assessment order to the extent of charging of interest on the ground that the assessee had not been given opportunity of being heard and restored the matter for reconsideration. The Tribunal deleted the additions made on account of the alleged excess shortage in gram and barley accounts and low household withdrawals. While upholding the disallowance of deposits made by 'B', 'P', 'PM' and 'R', the Tribunal referred to their statements and by giving detailed reasons held that the assessee had failed to discharge the onus of proving the capacity of creditors and genuineness of the deposits made by them. On petition under section 256(2) : HELD The reasons assigned by the Tribunal for refusing to…

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