TaxTMI 
TaxTMI 
2006 (4) TMI 90
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....rder pertaining to the assessment year 1991-92: "(i) Whether, on the facts and circumstances of the case and the evidence placed on record the finding that Sh. Surinder Kumar had no identifiable source of income out of which he could advance the loan of Rs. 50,000 is sustainable in law? (ii) Whether, on the facts and circumstances of the case, the provisions of section 68 of the Income-tax Act, 1961 be invoked and it be held that the loans advanced by Surinder Kumar of Rs. 50,000 each in the relevant assessment years is to be treated as an income of the appellant?" The assessee in the present case is engaged in the business of commission agent and sale/purchase of pesticides and fertilizers. During the year, the assessee introduced a sum....
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....as hereunder: "7. After hearing both the sides and considering the material on record, it is seen that the amount of Rs. 50,000 was deposited by Shri Madan Lal, accountant of the assessee-firm in the bank account of Shri Rajinder Kumar and after the deposit, the cheque was issued in favour of the assessee. It is not disputed that the cheque was prepared by Shri Madan Lal and the signature of Shri Surinder Kumar was obtained on the cheque issued to the assessee. It is also seen that Shri Dharam Pal, manager and brother of the assessee-firm has admitted that the bank account of Shri Surinder Kumar was opened on his introduction and the amount of Rs. 50,000 was deposited in the bank by Shri Dharam Pal, accountant of the assessee-firm and the ....
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....g the action of the learned Commissioner of Income-tax (Appeals), we dismiss grounds Nos. 1 to 3 of the assessee's appeal for the assessment year 1991-92." We have heard Sh. Avneesh Jhingan, advocate, appearing for the appellant and with his assistance have gone through the orders passed by the authorities carefully. Section 68 of the Act is the relevant provision, relying upon which, the addition has been made in the income of the assessee, the same reads as under: "68. Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the s....
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....ors, the capacity of his creditors to advance money and the genuineness of the transactions in order to discharge the onus imposed on him under section 68 of the Act. A similar view has been expressed by a Division Bench of the Kerala High Court in Oceanic Products Exporting Co. v. CIT [2000] 241 ITR 497, wherein also it was reiterated that such a finding recorded by the Tribunal is essentially a finding of fact. A Division Bench of the Delhi High Court in I.T.A. No. 478 of 2003 decided on December 2, 2003, in the case of Prem Nath Goel and Co. v. CIT reported as [2004] 271 ITR 390; [2004] 25 Indian Taxation Reports 124, has taken a view that for cash credit under section 68 of the Act, the onus is on the assessee to establish the genuinen....
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....n of law. (d) If the question raised in the appeal is already settled by the highest court of the country or the jurisdictional High Court, then the same cannot be regarded as a substantial question of law. Similarly, if the general principles to be applied in determining the question are well-settled and the only issue relates to application of those principles to the particular facts of the case, then no substantial question of law can be said to arise in the appeal. (e) If the conclusions recorded by the Tribunal in the particular facts of the case are plausible, then it would not be a case of substantial question of law. (f) The finding of fact recorded by the Assessing Officer or the first appellate authority or the Tribunal cannot ....