9911796707
TMI Blog2011 (7) TMI 806X X X X Extracts X X X X X X X X Extracts X X X X ..... persons who had advanced these amounts was not taken into account and consequently a perverse finding came to be recorded ?" 2. The material facts leading up to this appeal for considering the above- said substantial question of law are as follows : The Assessing Officer by order dated March 28, 2002, in exercise of power under section 143(3) read with section 147 of the Income-tax Act, held that the undisclosed credit in respect of Thimmegowda amounting to Rs. 24 lakhs ; Rs. 8 lakhs assessable for the assessment year 1997-98 and Rs. 16 lakhs assessable for the assessment year 1996-97 and undisclosed credit advanced by Sri Shreyas Kumar in a sum of Rs. 10,75,000 not been satisfactorily explained as the said Thimmegowda and K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent. 5. The learned counsel appearing for the appellants has taken us through the order passed by the Assessing Officer, the appellate authority and the Tribunal and submitted that when Thimmegowda and D. S. Kumar had themselves appeared and denied the transaction, the demand drafts would not assume any significance. Wherefore, the assessee had failed to explain the said cash credit. Wherefore, addition of the cash credit was justified as ordered by the Assessing Officer. The first appellate authority was not justified in deleting the undisclosed credit in respect of D. S. Kumar and the Tribunal was also not justified in deleting the undisclosed credit in respect of both the persons ; D. S. Kumar and Thimmegowda. He has produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded by the Assessing Officer, is clearly perverse and arbitrary as they have proceeded only on the basis that the demand drafts were produced. that the assessee has discharged his onus and, therefore, the credit has been satisfactorily explained, which is clearly perverse as the said persons ; Thimmegowda and D. S. Kumar themselves have stated before the Tribunal that they did not have any financial transaction, which has not at all been taken into account in the said oral statements, was the basis for the Assessing Officer to add the undisclosed credit in the name of Thim- megowda and D. S. Kumar. Wherefore, the order passed by the appellate authority and the Tribunal, deleting the undisclosed credit added by the Assessing Officer in respe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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