TMI Blog2006 (9) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... ner. JUDGMENT 1. At the instance of the assessee, the Income-tax Appellate Tribunal, Chandigarh Branch, Chandigarh (for short: "the Tribunal") has referred the following question of law arising out of its order dated August 19, 1985, in I. T. A. No. 10 of 1984, relating to the assessment year 1975-76 for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in sustaining the addition of Rs. 1,10,000 introduced by the assessee in its books of account on November 9, 1973, under the narration 'cheque from Punjab National Bank, Tohana' ?" 2. During the course of examination of the cash book of the assessee relating to the assessment year under consideration, the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of the directions given by him. If he was to rely on the letter dated July 19, 1978, there was hardly any point in setting aside the earlier of the Income-tax Officer and directing him to record the statement of the manager. In the statement made by him, the manager has time and again affirmed that the cheque was presented and passed on November 12, 1973, and the payment was also made on November 12, 1973. The records of the bank also confirmed his statement. The assessee's account in the bank was also debited on November 12, 1973. The stamped dated of passing the cheque is also November 12, 1973. On the fact of this evidence, on the earlier letter issued by the manager on July 19, 1978, the assessee procured the letter from the bank ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stances of the case and the totality of the circumstances, I would hold that the Income-tax Officer was not justified in coming to the conclusion that the amount of Rs. 1,10,000 shown as received from the Punjab National Bank, Tohana, on November 9, 1973, represented the assessees income from undisclosed sources. Because of the categorical statement made by Shri O. P. Gupta, manager, in his letter dated July 19, 1978, certifying that he had in his discretion allowed the payment to be made in cash after banking hours on November 9, 1973 and had put the date 12th on the cheque in his own handwriting and the repeated confirmation of Shri Lakhi Ram, cashier that the payment was made by him on November 9, 1973, itself after banking hours and tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) has relied upon the circumstance that on November 12, 1973 the payment was recorded as first entry which corroborated the version of the manager in his letter dated July 19, 1978, that he had made the payment after banking hours on November 9, 1973, and had put the date 12th on the cheque in his own handwriting. This aspect has not been dealt with by the Tribunal. The further question which has been high-lighted by learned counsel for the assessee is that the assessee had no occasion for making entry one day before. There was no compulsion for the assessee to make entry of receipt and payments on November 9, 1973, instead of November 12, 1973. The assessee had entered in the books of account the transaction which had actually taken place ..... X X X X Extracts X X X X X X X X Extracts X X X X
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