TaxTMI 
TaxTMI 
2001 (11) TMI 38
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....d remitted the matter to the assessing authority to decide afresh the point with respect to an addition of Rs.50,000 in accordance with law. This court by order dated April 27, 2001, admitted the appeal for hearing after framing the following substantial question of law: "Whether, in the facts and circumstances of the case, the Tribunal was justified in not quashing but merely setting aside the addition made on account of alleged unexplained cash credit of Rs.50,000 in the name of Manju Gugalia, whose affidavit has been filed and she was the existing assessee, and remitted a case for making fresh enquiry but not considering the fact that the appellant has discharged his onus to explain the cash credit standing in his books of account,....
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....; 60,000 (ii) Shri Mahendra Khameshra 16,000 (iii) Shri Mukesh Joshi 8,000 (iv) Shri Keshav Joshi 85,000 &nb....
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....Revenue preferred appeals to the Income-tax Appellate Tribunal. The Tribunal by the impugned order dated February 28, 2000, dismissed the appeal of the Revenue. However, the appeal filed by the appellant-assessee was partly allowed and the matter was remitted to the assessing authority with respect to addition of Rs.50,000. It would be relevant to refer to some of the facts with respect to the addition of Rs.50,000. One Smt. Manju Gugalia through a cheque No. 851290 dated May 20, 1987, deposited a sum of Rs.50,000 with the appellant-company. The said amount was credited in the books of the appellant. On the same day, the appellant paid back Rs.50,000 to Smt. Manju Gugalia through a cheque No. 310761, dated August 20, 1987, drawn on Punja....
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.... assessee-company. In view of this, the assessing authority held that Smt. Manju Gugalia was not in a capacity to deposit such a huge amount and, as such, treated a sum of Rs.50,000 as income of the assessee, which has been shown as a loan in the name of the lady from the undisclosed sources and added the said sum to the total income of the assessee. The finding of the assessing authority has been upheld by the Commissioner of Income-tax (Appeals), However, the Tribunal was of the view that the matter should go back to the assessing authority for examining Smt. Manju Gugalia or to verify the relevant facts from the assessment record of the said lady, whose file exists with the Income-tax Officer, Ward-II, Bhilwara. Accordingly, the Tribunal....
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....e burden of proving the creditworthiness is on the assessee. In the instant case, the creditworthiness of the depositor has not been proved by the assessee. The confirmation by filing an affidavit is not enough to arrive at a conclusion that the assessee had discharged the burden of proving the cash credit. Section 68 of the Income-tax Act, which deals with the cash credit, reads as follows: "68. Cash credits.-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 sum so credited may be charged to income-tax as the income o....
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....er held in Kale Khan Mohammad Hanif v. CIT [1963] 50 ITR 1 (SC), that if the assessee offers an explanation about the cash credit, he has to prove his explanation and if the assessee fails to tender the evidence or shirks an enquiry, then the assessing authority is justified in rejecting the explanation and holding that the income is from undisclosed source. Since the Tribunal has remitted the matter to the assessee, we refrain from making any further observations on the controversy, as it may prejudice the case of either of the parties. So far as the addition made on account of the cash credit of Rs.16,000 standing in the name of Raj Kumar is concerned, it is evident that said Shri Raj Kumar, the managing director, had purchased looms f....