1965 (3) TMI 7

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....M. In the year of account, a sum of Rs. 70,000 was found credited in the assessee's books of account in the name of a Tibetan, Kunjo Amdo Bhutia. The assessee explained this cash credit as sum deposited by Kunjo Amdo who being an illiterate and simple Tibetan did not believe in doing business through banks. The Income-tax Officer did not accept the assessee's explanation as to the genuineness of the alleged deposit of Rs. 70,000. On appeal before the Appellate Assistant Commissioner, Kunjo Amdo gave evidence on 9th April, 1957. The Appellate Assistant Commissioner found his evidence unsatisfactory and dismissed the assessee's appeal. Thereafter, the matter went up to the Appellate Tribunal who also dismissed the assessee's second appeal. On....

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....According to Mr. Bose, these Tibetan traders are persons, who bring raw materials from Tibet to Kalimpong carrying them on the shoulders of mules. They did not believe in doing transactions through banks as they could not sign their names in any Indian language. Various certificates were produced before the Income-tax Officer to show that, in the peculiar circumstances of the case, the assessee acted as bankers for Kunjo Amdo. The clear case of the assessee was that the said sum of Rs. 70,000 was deposited by Kunjo Amdo with him on April 7, 1949. This amount was supposed to be the sale proceeds of wool brought by Kunjo Amdo from Tibet to Kalimpong, and Kunjo Amdo, according to the assessee's case, got back the money through cheques on the C....

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....he assessee to explain the credit entry, though the onus might shift to the Income-tax Officer under certain circumstances Otherwise a clever assessee can always throw the burden of proof on the income-tax authorities by making a credit entry in the name of a third party either real or pseudonymous. " The point is now laid at rest by the Supreme Court in A. Govindarajulu Mudaliar v. Commissioner of Income-tax and Kale Khan Mohammad Hanif v. Commissioner of Income-tax . Applying the principles set out in the aforesaid cases, we do not think that the assessee has discharged the onus satisfactorily in the instant case. The assessee's books of account show that there is inherent weakness in the evidence adduced by the assessee. Kunjo Amdo Bh....