2011 (2) TMI 283

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...., Chandigarh in ITA No. 515/Chd/2009, relating to the assessment year 2005-06, claiming the following substantial question of law:-   "Whether, on the facts and in the circumstances of the case, the Hon'ble ITAT was right in law in deleting the addition of Rs.17,19,000/- made u/s 68 of the I.T. Act, when the assessee had failed to establish the genuineness and source of the same during the course of the assessment proceedings?"   2. Briefly stated, the facts necessary for adjudication as narrated in the appeal are that the assessee filed his return of income on 5.8.2005 for the assessment year 2005-06 declaring an income of Rs.1,03,500/- plus agricultural income amounting to Rs.3,75,000/-. The case of the assessee was taken ....

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.... I am of the view that it is well settled principle of law that the onus to establish the genuineness and source of cash deposit in this case is upon the assessee. Mere filing of affidavit or copy of ledger account is not enough to discharge the onus. This principle of law is established in the decisions of Punjab and Haryana High Court in 273 ITR 206 and 254 ITR 617 and even in the decision of Hon'ble Jurisdictional Tribunal in the case of M/s Ashok Trading Co. Vs. ITO, Kaithal, ITA No.452/Chandi/2003.   3.5 Moreover, the Assessing Officer is entitled to enquire and satisfy himself about the sources of money in the hands of the assessee. In this case, the source of money deposited in the bank account was not explained. The mere sta....

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....aim. The relevant finding recorded by the Tribunal reads thus:-   "We are of the view that even the income if estimated at the rate of Rs.25,000/- per acre, still it goes to Rs.25 lakhs. If the totality of facts and circumstances are analysed, it can be said that the impugned amount of Rs.17,19,000/- can be grown from 100 acres of land."   9. The finding recorded by the Tribunal being based on consideration of non-existent material is vitiated and liable to be set aside. The judgments relied upon by learned counsel for the assessee has no applicability to the facts of the present case. 10. Accordingly, the substantial question of law is answered in favour of the revenue. The appeal is allowed and the impugned order passed by....