TMI Blog2002 (7) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... trace the sellers and enquire about the fact of purchase? - 3. Whether the order of addition passed by respondent No. 3 is vitiated because the principles of natural justice were not followed?" - we find no justification to interfere in the order of the Tribunal. Consequently, the appeal stands dismissed. - - - - - Dated:- 22-7-2002 - Judge(s) : Y. R. MEENA., SHASHI KANT SHARMA. JUDGMENT The judgment of the court was delivered by Y.R. MEENA J.-This appeal is directed against the order dated July 19, 2000. The appeal has been admitted in terms of the following questions: "1. Whether the Appellate Tribunal can make out a new case under section 68 of the Act treating credit balance in the account of the appellant and making additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been shown in para. 6 of the original order. The Assessing Officer was of the view that the purchases are not genuine and he added Rs. 2,75,000 in the assessment order dated March 6, 1986. The assessee carried the matter in appeal before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) vide order dated December 6, 1987, set aside the assessment order ate March 6, 1986, with a direction to give opportunity to the assessee to explain the genuineness of the transactions entered into with the parties referred to in para. 6 of the original assessment order. Thereafter again an enquiry was made from the assessee and the assessee was directed to produce those parties or to give the details of those parties, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when the summons were issued to the parties, who are nomadics and whereabouts are not known to the assessee, the addition was not justified. In appeal before the Tribunal, the Tribunal found that many opportunities were given to the assessee, twice the assessment order was set aside, thereafter, assessments were made one after the other, but in spite of that the assessee failed to prove the genuineness of the transactions or the credits. Therefore, the Tribunal confirmed the addition invoking the provisions of section 68 holding that once the credit entry has been made in the books of account in the names of various parties and if the genuineness of these cash credits could not be proved, the Assessing Officer was justified in making the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the purchases are genuine. Mr. Mehta also argued that the Tribunal has considered a new ground, which was not before the authorities below that the Tribunal has invoked the provisions of section 68 of the Income-tax Act, 1961. It is true that no loan has been taken from those parties. The case before the Assessing Officer was that the assessee claimed some purchases from some parties, whom he could not produce or those parties were not available when the summons under section 131 was issued. Therefore, the initial dispute was with regard to the genuineness of the transaction regarding purchase of wool from the parties referred to in para. 6 in the original assessment order. The Tribunal has taken the view when the payment has not been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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