2001 (10) TMI 1162

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....x Act, 1961. 2. The learned Departmental Representative relied on the order of the assessment passed by the Assessing Officer. He pointed out that the assessee's accounts showed acceptance of loans of Rs. 29,25,000 from M/s Marigaya Estate & Finance Ltd. Rs. 15 lakhs and Rs. 14,25,000 from M/s. Avash Mechanical Project & Finance Pvt. Ltd. The assessee in support of these credits only confirmatory letters before the Assessing Officer and that too undated. He argued that this the Assessing Officer was fully justified in adding this sum of Rs. 29,25,000 as income of the assessee as because merely filing of the confirmatory letter does not absolve the assessee from the duty cast by section 68 of the Act. He also stated that the action of the....

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.... by the debtor and creditor should also be stated in the confirmation letter.Thus, in our considered view no advance inference can be drawn from such confirmation letters. Section 250(4) of the Act empowers the first appellate authority before disposing of an appeal, to make such further enquiry himself as he think fit. He does not exceed his jurisdiction if he asked the assessee to produce or file additional evidence or papers in the manner he think fit. In the case of Smt. Prabhavati S. Shah v. CIT [1998] 232 ITR 1, 8 (Bombay) it was observed by the Bombay High Court that the power conferred on the first appellate authority under section 250(4) being a quasi-judicial power it is incumbent on it to exercise the same if the facts and circum....

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....vidences by the CIT(A) was in exercise of his power under section 250(4) of the Act and it has is not been done by violating the previsions of rule 46A of the I.T. Rules,1962. In confirmation letter of the creditors filed before the Assessing Officer,it has been observed that the address of the creditors as well as the G.I.R. Nos. of the creditors were duly given. Therefore the CIT(A) was justified in observing that the loan confirmation along with GIR No. were filed but the Assessing Officer made no effect to verify the loan transaction. In the case of Jalan Timbers v. CIT 223 ITR 11 (Gauhati) the jurisdictional High Court has held that the amounts were shown in the income-tax return of the assessee. Besides the creditor had also shown in ....