1977 (12) TMI 47

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....r s. 147 of the Act. The assessee challenged the notice issued under s. 148 before the Hon'ble High Court and by the judgment dt. 1st March, 1974 reported in 100 ITR 159, the High Court upheld the reopening of the assessment. The ITO proceeded with the re-assessment and called upon the assessee to prove the genuineness of the cash credits. The summons issued to the creditors came back unserved and the ITO was of the opinion that the assessee had no further evidence to substantiate the genuineness of the cash credits. He, therefore, completed these assessment by adding the said sum of Rs. 70,000 and interest paid thereon, thus computing the total income at Rs. 94,340. 3. The assessee appealed to the AAC who confirmed the re-assessment on ....

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....reditors were income-tax assessees and their file numbers also had been given. It was submitted that in the circumstances the assessee had identified the creditors who had also confirmed the transaction of the loans. Reliance was placed on the decision of the Calcutta Bench of the Tribunal in the case of Biswanath & Co. to show that one of the creditors had been accepted as credit worthy which contradicted the claim of the Department that these creditors were mere name lenders. It was submitted that the mere fact that the names of the creditors were found in a list of name lenders maintained by the Department was not sufficient to show that the transaction with the assessee was bogus and, therefore, the Department had not disproved the prim....