TaxTMI 
TaxTMI 
TaxTMI 
1999 (9) TMI 68
X X X X Extracts X X X X
X X X X Extracts X X X X
....red by the assessee about the nature and source of the cash credits in the aggregate of Rs. 1,71,500 or any portion of it is not satisfactory, is perverse, unreasonable, contrary to law and one which no reasonable person would have come to that conclusion ?" The dispute relates to the assessment year 1977-78. In the books of account, certain credits were noticed by the Assessing Officer, totalling Rs. 5,36,500, in relation to 15 persons. It was indicated in each case that the amount received from the concerned person related to rent and security deposit of fishing boat. The Assessing Officer, at the time of hearing on October 17, 1979, directed the assessee to furnish confirmations from all the creditors, which were filed on January 25, 19....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of Rs. 2,15,000. So far as the balance amount is concerned, which was the subject-matter of challenge by the Revenue, it was noticed that the assessee hopelessly failed to prove creditworthiness of the alleged creditors to advance such huge amounts varying from Rs. 25,000 to Rs. 60,000. It was noticed that the Income-tax Officer had discussed in detail the contents of the statements given by the creditors who had appeared on August 16, 1980, and only one of the reasons on which the Income-tax Officer relied for not believing the creditors is the difference in the signatures. It was observed that all the persons were fishermen who were not capable of lending such huge amounts to the assessee. In fact, while explaining the discrepancy in the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....trite law that when there is non-consideration of a relevant material and/or non-consideration of a plea not given up, or consideration of irrelevant material, a question of law may arise. But, in the case at hand, we find that the Tribunal elaborately dealt with the respective stands and gave its positive findings as to how the explanation offered by the assessee was untenable. After the enactment of section 68 of the Act, the burden is placed on the assessee to prove a credit appearing in its books of account. That burden has to be discharged with positive material. When it is contended that a person had advanced money or had given a loan, it has to be established that the person was not a man of straw and had the capacity to give the mon....