TMI Blog1981 (11) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... ness of the cash credit and, consequently, the said additions should not be sustained. 2. The cash credit of Rs. 15,000 appeared in the books of account of the assessee for the asst. yr. 1972-73. The ITO treated the account as the income of the assessee from undisclosed sources on the ground that inspite of opportunity given to the assessee, no evidence was produced to establish its genuineness. For the same reason, he also disallowed the assessee s claim of interest payment amounting to Rs. 1,079 in respect of the above credit. 3. Against the above additions, the assessee filed an appeal before the AAC who remanded the matter to the ITO in order to give the assessee a further opportunity of placing the necessary evidence before him, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000 with us through our advocate. Shri R. P. Modi, could not be traced out and it is rumoured that she is dead. It is requested that your honour may be pleased to dispose of the appeal on the basis of evidence and material on record". On receipt of the above letter, the CIT (A) came to the conclusion that the genuineness of the credit has not been proved by the assessee. Accordingly, he confirmed the addition of the cash credit as income from undisclosed sources and also the disallowance of the interest claimed by the assessee on the said credit. 5. Aggrieved by the above order of the CIT (A), the assessee filed a second appeal before the Tribunal. After setting out of the above facts, the ld. Accountant Member observed that as there i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to any deliberate omission on the part of the assessee. As she had already confirmed the genuineness of the credit when she was examined by the Inspector deputed by the ITO and no material has been brought on record by the Revenue to controvert that confirmation given by her, he was of the view that the genuineness of the credit should be accepted. He was further pointed out that the statement of the lady was recorded by the Inspector in the presence of the assessee s accountant shri Raj Narain, who has also filed an affidavit confirming the above facts. In this affidavit, Shri Raj Narain has stated that, according to the lady, she was deposited the amount with the assessee out of her savings made by her in the course of several years from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1977 that such a statement was given by the lady and was recorded by the Inspector. In the circumstances, it could not be said that the creditor has not given confirmation regarding the factum of the deposit. The statement has been disbelieved by the ITO on the ground that the lady had not maintained any books of account evidencing her capacity to advance the amount and she had also not used that money on any earlier occasion for giving any advance to any other person. In my view, these are not circumstances which would be sufficient to disbelieve the statement given by her. On the later occasion in 1980, when the CIT (A) wanted that the lady should be produced again for examination, she was not available as according to the assessee, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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