Burden of proof and creditworthiness in credit and purchase entries led to remand for fresh factual findings.

Proper appreciation of the materials on credits, purchases, and creditworthiness required fresh factual examination, as the Tribunal had not fully analysed the evidence and related onus. The Kerala HC considered the Tribunal the last fact-finding authority and found it appropriate to have the appeals re-examined on the factual aspects after considering the relevant materials and documents. The reference applications were therefore disposed of by directing the Tribunal to rehear the appeals and decide the factual issues afresh.

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Issues: Whether the factual findings on the onus regarding credits and purchases required interference in the reference proceedings, and whether the matter should be sent back to the Tribunal for fresh consideration.

Analysis: The questions turned on the proper appreciation of the materials, the discharge of onus, and the acceptability of evidence relating to the entries and creditworthiness. As the Tribunal had not fully analysed the factual position, and being the last fact-finding authority, it was considered appropriate to have it re-examine the appeals and arrive at findings on the factual aspects after considering the relevant materials and documents.

Outcome: The reference applications were disposed of by directing the Tribunal to rehear the appeals and decide the factual issues afresh.

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