TMI Blog1993 (10) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the Department arise out of the order dt. 14th March, 1991 of the CIT(A) wherein he has disposed of the assessee's application under s. 154 of the Act. According to the assessee, several of his arguments were not considered by the CIT(A) in disposing of the appeal. Since in the proceedings before us we have allowed the assessee to take up all the arguments that may be necessary for the disposal of the appeal, we are of the opinion that this appeal and the cross objection are only of academic in nature. We, therefore, dismiss the same. 4. Both the parties agreed that the facts in all the other cases arise out of the amnesty returns filed by the following parties whose cash credits appear in the books of three different firms: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The learned counsel further submitted that all these returns were accepted. Relying upon Circular No. 451 issued by the Central Board of Revenue placed at page 135 of the paper book it was argued that the Department should not have made the disputed addition in the hands of the firm. The learned counsel argued that the Department has made the addition by applying the provisions of s. 68 in the hands of the firm, which is not legal or proper. According to him, the creditors have filed their confirmation letters; their identity and genuineness remain unquestioned and the capacity of the creditors arises from the sources declared under the amnesty scheme by the HUF and also by different individuals. The learned counsel further argued that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ource of income of these persons, whereas according to him in the cases of these assessees, the creditors had a money-lending business and independent source of income and they were not hitherto assessed to tax. Taking benefit of the amnesty circular, they have disclosed and declared income to tax and paid tax thereon and they have also lent the money to the assessees. In support of his contention, the learned counsel for the assessee relied on the judgment of the Patna High Court in Addl. CIT vs. Bahri Bros. P. Ltd. (1984) 42 CTR (Pat) 66 : (1985) 154 ITR 244 (Pat) and the judgment of the M.P. High Court in Lachhiram Puranmal Anr. vs. ITO Ors. (1990) 184 ITR 186 (MP) and also the paper book filed in respect of each of the assessees. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preme Court in Workmen of Associated Rubber Industry Ltd. vs. Associated Rubber Industry Ltd. Anr. (1985) 45 CTR (SC) 355 : (1986) 157 ITR 77 (SC) to the principle that we should place a construction to the provisions of law in such a manner as to counter-act the evasion of taxes. 7. The learned counsel for the assessee, on the other hand, submitted that all the ingredients of cash credits which are placed on the assessee under s. 68 have all been satisfied and none of the case laws relied on by the learned Departmental Representative supports the case of the Revenue. 8. We have considered the rival contentions in the light of the material placed before us. The addition made in the case of the assessee by the Department is under s. 68 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ards money-lending considering the place where they are lent, are very much reasonable. The cash credits have been introduced to the assessees through the account payee crossed cheques and the repayment of the loan has also gone by account payee crossed cheques. Therefore, the Department could have easily brought some material to indicate that the unaccounted money of the assessee has been introduced circuitously through the medium of cash credit. The AO had not made any attempt on those lines. Therefore, the case laws relied on by the Revenue are of little help to the Departmental case. In our view, although the construction counter evasion should have been placed, but we are afraid looking to the amnesty circular issued by the CBDT, which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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