TMI Blog1992 (2) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 256(2) of the Income-tax Act, 1961 (for short " the Act "). Briefly stated, the facts are that in the case of the non-applicant assessee, for the assessment year 1979-80, addition of Rs. 30,000 in respect of cash credits of Rs. 10,000 in the names of each of the three persons named by him was made and disallowance of Rs. 2,572 relating to interest paid on those cash credits was also made. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cash credits were not proved? (2) Whether, on the facts and in the circumstances of the case, the Tribunal is justified in giving weightage to the evidence of mere possession of agricultural lands by the creditors when the assessee is required to prove not only the capacity of the creditor to advance the loan but also the actual advance?" The Tribunal refused the prayer and hence the prese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s) or the Commissioner (Appeals) to be false, or. " Learned counsel for the assessee, on the other hand, submits that the burden cast on the assessee is only to offer an explanation which should mean a plausible explanation and not a conclusive proof of advance. Learned counsel for the assessee further submits that the assessee had filed revenue papers to show possession of creditors over agricu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capacity of the creditors to advance as well as evidence of actual advance by producing the creditors themselves before the Incometax Officer who had examined them and such examination naturally must be relating to the actual advance of cash credits.Whether the statements of creditors were reliable or not pertains to appreciation of evidence and as such would constitute a pure question of fact as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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