TMI Blog1996 (8) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Tolaram Daga [1966] 59 ITR 632 under the Indian Income-tax Act, 1922, would not apply in the present case of the assessee in view of the provisions contained in section 68 of the Income-tax Act, 1961, and thus reversing the decision of the Commissioner of Income-tax (Appeals) passed referring and relying on the said decision, amongst others, and restoring the findings of the Assessing Officer regarding the cash credits in question ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal being the final fact finding authority was justified in law in reversing the decision of the Commissioner of Income-tax (Appeals) without any independent consideration of all the issues on facts and in rendering the conclusion by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs invoking the power under section 68 of the Act as income from other sources. The Assessing Officer also disallowed the interest paid to all the creditors including the interest paid on amounts obtained from them in the preceding assessment year. The assessee being dissatisfied with the order passed by the Assessing Officer preferred an appeal before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) after hearing the parties allowed the appeal in respect of the loan given by six out of seven creditors as mentioned in page 31 of the paper book. The Commissioner of Income-tax (Appeals) remanded the matter to the Assessing Officer directing him to give another opportunity to the assessee to prove the transa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tting aside the order passed by the Commissioner of Income-tax (Appeals) without recording any reasons whatsoever. Learned counsel has also submitted that the Tribunal was absolutely wrong in coming to the conclusion that the decision of Tolaram Daga v. CIT [1966] 59 ITR 632 (Assam) was not applicable in the present case on the ground that the said decision was rendered by this court under the Indian Income-tax Act, 1922, where there was no such provision similar to that of section 68 of the present Act. Learned counsel submits that it is true that similar provision of section 68 of the present Act was not there in the Indian Income-tax Act, 1922 ; but the principles enunciated in the said decision are very much applicable in the present ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arty and under what circumstances such deposits should be considered as genuine or not. In the said case, this court observed thus : " At the outset, we have to point out that there is no substance in the contention that the sources from which the money was realised by the third party are within the special knowledge of the petitioner as the depositor happens to be his wife. Whether he has knowledge at all of the source of the money deposited by the third party is a matter which has to be decided on evidence. The mere fact that the third party making the deposit happens to be the wife of the assessee does not ipso facto make the assessee come into the knowledge of the sources from which the money was realised. Under law, in the absence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as genuine. It will not be necessary on the part of the assessee to further prove the capability of the depositor. Similar view was expressed by this court in Income-tax Reference No. 2 of 1992 --Jalan Timbers v. CIT [1997] 223 ITR 11. In the said decision this court held thus : "Besides, the creditors had also shown in the returns about giving of the loan to the assessee. Strangely, the Income-tax Officer while making the assessment in respect of the three creditors abovenamed accepted the returns. This itself will go to show that the amount received by the assessee was at least prima facie genuine...." In the present case, the Assessing Officer did not disbelieve the entries made and also the statement recorded. Section 68 of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax (Appeals) were erroneous. The Tribunal is the last authority so far as the facts are concerned. The Tribunal is required to consider each and every fact and discuss the evidence available on record. It may not always be necessary to discuss each and every piece of evidence in detail while affirming the order. But in case of reversal the Tribunal is duty bound to discuss each piece of evidence placed before it and come to an independent finding by giving reasons. In this connection, Mr. Bhattacharjee has drawn our attention to a decision of the apex court in Udavdas Kewalram v. CIT [1967] 66 ITR 462. In the said case, the apex court observed thus : " The Income-tax Appellate Tribunal performs a judicial function under the Indian Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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