2012 (7) TMI 493

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..... justified in law in not appreciating the evidence in the form of 131 statements where in the creditors have confirmed the loans on the facts and circumstances of the case? 3. Whether the Tribunal justified in confirming the loans without giving telescoping effect to the addition income offered for the said assessment year?" 2. The assessee is an individual and assessment year is 2000-01. The assessing officer found in the books of accounts that in the previous year corresponding to the assessment year, the assessee had good number of cash credit entries attributable to as many as eight persons and totaling a sum of Rs.10,77,171/-. The Assessing Officer having found that all the persons were one way or the other related to the assessee an .....

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..... ax in terms of section 68 of the Act. 5. It is also submitted that when the assessing authority had examined the source of credit, namely, deposit in the bank, if at all such deposits could have been proceeded against as unexplained investments in terms of section 69 of the Act and the amount could not have been brought to tax under section 68 of the Act in the hands of the assessee. 6. Yet another submission is that when once creditors had admitted, if at all the course of action that was required to be taken by the revenue was to proceed against such persons and to bring that amount as income in their hands if they had not already disclosed and not to add that as income of the assessee etc; that cash credit entries relating to two perso .....

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..... ring for the respondent - revenue, as notice had been issued to the revenue, submits that even in the bank deposits on the security of which amount had been borrowed and the assessee had shown as a credit taken from several persons was a deposit jointly held by the assessee and the persons who were shown as creditors. 12. It is also brought to our notice that persons were close relatives such as kith and kin of the assessee. The circumstances weighed with the assessing authority to infer that the explanation is not satisfactory; that they were not genuine cash credits, but so indicated in the books of accounts of the assessee. This finding has not been disturbed either by the first appellate authority or second appellate authority - the Tr .....

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