TMI Blog1972 (6) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... s finding that the loans were assessees income from undisclosed sources does not gives rise to a question of law - Tribunal's finding was arrived at on the basis of association of the evidence. This is a question of fact - Income-tax Application No. 39 of 1968 - - - Dated:- 22-6-1972 - Judge(s) : KOTVAL., CHANDRACHUD. JUDGMENT The judgment of the court was delivered by KOTVAL C.J.- While it is not the practice of this court to give reasons when discharging a rule issued, we depart from that long standing practice because we have been recently directed by the Supreme Court to give reasons, vide Commissioner of Income-tax v. Daulatram Rawatmall and Reform Flour Mills P. Ltd. v. Commissioner of Income-tax. Having heard counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not served or if after the service of the summons the party does not turn up, it is for the assessee to produce the party himself so that the I.T.O. can examine and satisfy himself that the party was in a position to give the loans alleged to be taken from him." Now in this view undoubtedly the Income-tax Officer was in error. It is not for the party to have produced the witnesses without a summons. The Income-tax Officer did summon afresh the parties concerned. They received the summons but did not appear. The assessee could not be blamed for all this. This was the main ground of challenge to the Income-tax Officer's order before the Appellate Assistant Commissioner in appeal and the Appellate Assistant Commissioner realised the err ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion. In paragraph 3 of their order they have set forth adequate and strong grounds for showing why the Appellate Assistant Commissioner ought not to have remanded the case for an assessment de novo, but the controversy between the department and the assessee could not be disposed of merely by that finding. The further view which the Tribunal took was that upon the material or evidence which had been produced by the assessee before the Income-tax Officer and it was overwhelming and clinching material the only conclusion which the Income-tax Officer could come to was that the loans were genuine loans. The Tribunal set forth these circumstances in paragraph 2 and we can only enumerate them to show how their conclusion is only a pure finding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll the payments have been made by cheques and the interest were also paid by cheques and all the lenders and the broker were all Income-tax assessees and the lenders had confirmed having lent the amounts in question, we are unable to agree with the department that there was any prima facie suspicion or reason to doubt the genuineness of the loans." It also appears from paragraph 3 of the Tribunal's order that the Income-tax Officer had made some enquiries from the bankers. Who those bankers were and what were their names, was not disclosed in spite of the assessee having asked for their names. The assessee had also asked for evidence if any which was recorded but that was also not given. The Tribunal held in regard to this as follows : ..... X X X X Extracts X X X X X X X X Extracts X X X X
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