TaxTMI 
TaxTMI 
TaxTMI 
2010 (7) TMI 841
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....hether the addition of Rs. 8,50,000 to the income of the assessee as unexplained cash credit by the Tribunal is sustainable in law and/or is not unreasonable and perverse ?" This appeal relates to the assessment year 1994-95. The facts of the case is summarised as follows : The assessee-appellant at the relevant point of time has been trading bidis and as such used to sell and distribute to various customers situates at different parts of the country. In the course of business the assessee used to receive from time to time cash from the customers by way of advance. In the relevant assessment year in the return a sum of Rs. 8,50,000 was shown to have been received cash advances. As such the deduction of the said sum from the income was so....
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....cepted the explanation and also evidence of the creditworthiness of the creditors. Hence, relief was granted. 5. The Revenue being aggrieved by the said decision approached the learned Tribunal who came to the fact finding that the Commissioner of Income-tax (Appeals) has erroneously held that the summons were issued after assessment was done. Only on that ground it was held that the assessee could not establish by producing evidence that the credit was received from the various customers. As such the case of the appellant is that the cash credit was received as against the sale and supply of bidis was not accepted. Hence, the order of the Commissioner of Income-tax (Appeals) was reversed and the order of the Income-tax Officer was restore....
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.... as proposition of law held that the Tribunal must in deciding an appeal, consider with due care, all the material facts and record its finding on all the contentions raised by the assessee and the Commissioner in the light of the evidence and the relevant law. 9. We find considerable force of the submissions of the learned counsel for the appellant that the Tribunal has merely noticed that since the summons issued before assessment returned unserved and no one came forward to prove. Therefore, it shall be assumed that the assessee failed to prove the existence of the creditors or for that matter the creditworthiness. As rightly pointed out by the learned counsel that the Commissioner of Income-tax (Appeals) has taken the trouble of examin....