1990 (11) TMI 83 - HC - Income Tax

Court dismisses petition, upholds inclusion of unexplained income in assessee's total, denies claim of inability to produce evidence.

The court dismissed the petition, affirming the Tribunal's decision that the cash credits totaling Rs. 25,000 for the assessment year 1962-63 remained ... Cash Credits Issues:1. Assessment of cash credits totaling Rs. 25,000 for the assessment year 1962-63.Analysis:The petitioner sought to refer several questions to the court regarding the assessment of cash credits amounting to Rs. 25,000 for the assessment year 1962-63. The questions primarily revolved around the genuineness of the cash credits, the burden of proof on the assessee, the production of evidence, and the interpretation of section 68 of the Income-tax Act, 1961. The petitioner had filed confirmation letters from creditors and provided their names and addresses, requesting the Income-tax Officer to enforce their attendance. However, the Income-tax Appellate Tribunal held that the burden to establish the genuineness of the cash credits had not been discharged, even though almost 14 years had passed since the loans were taken. The Tribunal also considered alleged incriminating statements from creditors without allowing the assessee to cross-examine them. Ultimately, the Tribunal concluded that the cash credits remained unexplained and were liable for inclusion in the assessee's income.The court noted that the original assessment order was set aside at the petitioner's request to provide further opportunity to substantiate the claim regarding the cash credits. Despite this, the petitioner later claimed that after many years, it was not possible to produce evidence or lead any further proof. The court found this argument contradictory, stating that the petitioner was aware of the evidence required to substantiate the claim from the beginning. The court held that since the petitioner had already succeeded in obtaining additional opportunities for substantiation, it was not permissible to now claim inability to produce evidence. Consequently, the court dismissed the petition, affirming the Tribunal's decision that no question of law arose in the case.