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TMI Blog2002 (8) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... e production of creditors is sufficient to discharge the onus of the assessee and the creditworthiness/paying capacity is of no relevancy at all? Whether the learned Income-tax Appellate Tribunal was justified in deleting the additions without rejecting the findings of the Assessing Officer with regard to the creditworthiness and genuineness of the transactions? Whether the learned Income-tax Appellate rribunal was justified in not applying the ratio in the case of Shankar Industries v. CIT [1978] 114 ITR 689 (Cal), as decided by the court to the present matter?" A search and seizure operation was carried out under section 132 of the Income-tax Act, 1961, on August 2, 1996, at the business premises of Om Shanti and Sons, Bapu Bazar, Jaip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5-7-1994 10,000 11,500 ------ 2. Shri Sunesh Sharma 28-5-1994 9,500 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5-11-1994 10,000 18,000 ------ 6. Shri Virendra Singh 15-11-1994 1,000 9-1-1995 &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s have been shown in the books of account maintained by the assessee in the regular course of business activities, no addition is warranted. He deleted the addition so made. Heard learned counsel for the parties. Mr. Singhi, learned counsel for the Revenue, submits that when the cash credits are not genuine, the Assessing Officer has rightly taxed that amount in the hands of the assessee. He place reliance on the decision of the Calcutta High Court in the case of CIT v. Korlay Trading Co. Ltd. [1998] 232 ITR 820. He further submits that even if the cash credits have been shown in the cash books, unless that has been disclosed as income in the relevant assessment years, that can be taxed in the block assessment year treating that income as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receives commission from the United India Insurance Company. He earns commission roughly Rs. 30,000 to Rs. 40,000 per year. The next creditor is Shri Sunesh Sharma, who is working as accounts assistant in Taj Trade and Transport Co. Ltd. He advanced Rs. 9,500 and confirmed the loan advanced. The other creditor is Shri S.P. Rajoria, who is a retired employee and getting Rs. 2,000 as pension per month. He advanced Rs. 11,500 and confirmed the loan advanced. The next creditor is Jain Nath, who is a constable and his salary is Rs. 4,000 per month. He advanced Rs. 11,500 and confirmed the genuineness of the loan advanced by him to the assessee. The next creditor is Smt. Asha Sharma. She is the mother of the assessee. She advanced Rs. 21,000. Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntries in the books of account if shown, that does not prohibit the Assessing Officer to tax that amount in the block period, if that amount has not been taxed in the regular assessment. When the cash credits are not taxed in the relevant assessment years, that can be treated as undisclosed income and can be taxed after search in the block period. In the result, we direct that except the cash credit shown in the name of Smt. Savitri Devi all other cash credits should be accepted as genuine. No addition can be made on account of those cash credits. However, we restore the order of the Assessing Officer regarding advance shown in the name of Smt. Savitri Devi. We further clarify that if the income is not offered for tax in the regular assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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