TMI Blog1992 (5) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee an opportunity to prove the genuineness of the cash credits. In the new assessment the ITO accepted the genuineness of the credits. The Commissioner, after notice to the assessee and considering its reply passed the above order under section 263 observing that : " During the fresh assessment proceedings, some of the depositors were produced before the ITO and in case of the persons who had died at that time, their legal representatives appeared and gave statement. However, it is seen that during the fresh assessment proceedings, the persons concerned again repeated what was stated during the original assessment proceedings. Most of the depositors are said to be agriculturists and none of them could prove that their income from ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... positor could not earn any thing out of this land. The details regarding expenses on agricultural activities and on household expenses and details regarding the size of family etc. were not stated in the statement of the depositors. From the records, it is also seen that the Assessing Officer relied on the statements made by the depositor and no independent inquiries regarding genuineness of credits were made. In case of persons who have died, the Assessing Officer also did not inquire from sons of those persons as to how they came to know that their fathers have deposited the amounts with this firm and have received back the same. Considering the above facts it is clear that the Assessing Officer has accepted the cash credits as genuine wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e him that the earlier proceedings were exhaustive and involved frequent hearings as also producing witnesses etc. for recording the statements. He then pointed out from that letter that the assessee felt that the proceedings may be an off-shoot of an appeal before the Tribunal in other cases and if that was so the spirit of section 263 was being disregarded. In that letter the assessee had also pleaded that they had undergone litigation for a long time and a fresh proceeding would cause considerable hardship. 3. All these aspects the learned counsel strongly urged before the Tribunal and finally submitted that every thing possible was done by the ITO earlier and there were now no reasons to take the revisional action. 4. On the other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts with all question and answers, the filing of the affidavits even where the original creditors were dead by their successors are witness to his efforts. It may be true that all the enquiries indicated by the Commissioner in his revisional order as shown from the above quotation may not have been made and it may even be true that those enquiries should have been made but does that mean that this revisional order should have been passed ? This is case where the matter had been sent back to the ITO and this is the second time that it has been sent back. The accounting year is S.Y. 2036. Ten years had passed when the revisional order was made. Even before the second assessment, some of the creditors had died. As is well-known, with the passi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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