TMI Blog1973 (2) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... 1969, it is apparent that the firm was being carried on by the sons of Gumani Ram. While making the assessment for the assessment year 1967-68, the Income-tax Officer noticed these two cash credits appearing in the names of Smt. Malan Devi and Smt. Parvati Devi and asked the assessee-firm to explain the source of these credits. It was explained by the assessee's representative that Smt. Parvati Devi Bhatia had no independent source of income and was wholly dependent on the partners of the firm who were her brother's song. Smt, Malan Devi was reported to be having some property yielding income of about Rs. 1,000 annually and she had no other source of income. The Income-tax Officer was not satisfied with that explanation and held that from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hands of the creditor to the extent of Rs. 2,000 and sustain an addition of Rs. 3,500. As regards the cash credit in the name of Smt. Parvati Devi, no evidence was produced before the authorities below nor any evidence has been produced before us. The addition is confirmed." This Order was passed on January 12, 1972, and the applicant filed an application under section 256(1) of the Income-tax Act, 1961, before the Income-tax Appellate Tribunal for referring the following questions of law arising out of its order dated January 12, 1972 : "(i) Whether, on the facts and in the circumstances of this case, there was any material before the Appellate Assistant Commissioner to hold that the cash credit entries of Rs. 5,500 and Rs. 5, 100 st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. It may be pointed out that the credits were shown in the account books of the assessee-firm and, according to the Supreme Court decision in Kale Khan Mohammad Hanif v. Commissioner of Income-tax , the burden of proving the source of the cash credits is on the assessee. It was observed by their Lordships : "It is well-established that the onus of proving the source of a sum of money found to have been received by the assessee is on him. If he disputes liability for tax, it is for him to show either that the receipt was not income or that if it was, it was exempt from taxation under the provisions of the Income-tax Act." The learned counsel for the petitioner, however, relies on the judgment of the Division Bench of the Assam High Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Bhatia had no independent source of income and was wholly dependent on the partners of the assessee-firm. With regard to Smt. Malan Devi, the assessee firm disclosed that she had an annual income of Rs. 1,000 from property. The assessee-firm did not plead ignorance of the knowledge of the source from which the two ladies got the amount. The ratio of the Assam decision, therefore, cannot be made applicable to the instant case. The learned counsel for the department has referred to section 68 of the Income-tax Act, 1961, which is as under : "68. Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof, or the explanation off ..... X X X X Extracts X X X X X X X X Extracts X X X X
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