2006 (10) TMI 97

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....ncome tax authorities treating the cash credits in question as the income of the assessee suffer from perversity and is arbitrary and is based upon mere assumptions and presumptions and surmises and conjectures and more so when the creditors themselves have been produced and their statements have been recorded and their affidavits have been adduced and they have confirmed the advancement of the credits and repayment of the credits and the advances made by most of the creditors have been believed by the income tax authorities themselves? (ii) Whether without rejecting the account books additions can be made of various cash creditors in the facts and circumstances of the case? (iii) Whether the impugned orders of the income tax authorit....

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....gh   18.04.1997   11,000 15 Avtar Singh   25.06.1997 05.03.1998   15000 3000     18,000 16 Jagir Singh Numberdar   04.03.1998   18,000   17   Surinder Kumar 26.3.1998   17,000   3.  As the genuineness of the credit was doubted by the Assessing Officer, the issue was confronted to the assessee. Considering the explanations furnished by the assessee, the Assessing Officer vide its order of assessment dated March 12, 2001 held cash credits to the tune of Rs.2,57,500/- introduced in the books of account, during the year in question, to be not genuine and accordingly made additions on that acc....

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....n raised by the counsel for the assessee to support the case built up by him is on the basis of statements made before the authorities during the course of assessment proceedings. It was submitted that though other material in the form of affidavits was considered by the Assessing Officer but the statements were not considered which resulted in miscarriage of justice. We have even perused the statements, the same also do not advance the case of the assessee any further. All what has been stated in the statements is already considered and dealt with by the authorities below. Merely because in some case the amount was also shown to have been returned does not prove that the transaction in question was genuine or bonafide. No explanation could....