1996 (1) TMI 86

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....WARI J.---On rejection of Reference Application No. 66/(Ind) of 1994 on September 21, 1994, the applicant-assessee has filed this application under section 256(2) of the Income-tax Act, 1961 (for short, "the Act"), to direct the Tribunal to state the case and refer two out of the four proposed questions of law, as noted below, arising out of the order dated March 11, 1994, passed by the Tribunal i....

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.... case are that the applicant is a dealer in cloth carrying on the business in the name of "Ashoka Trading Company" as proprietary concern owned by Ashok Pal Daga as karta of a Hindu undivided family. During the course of its business, this concern borrowed money from various parties. The Assessing Officer, however, made additions under section 68 of the Act on the ground of alleged unproved cash c....

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....loan through cheque. Yet the same was not accepted. The applicant then filed the reference application under section 256(1) of the Act. The Tribunal declined to refer the questions and rejected the application. The applicant, thereafter, filed this application under section 256(2) of the Act. We have heard Shri G. M. Chaphekar, learned senior counsel, with Shri Subhash Samvatsar and Shri Sharda....

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.... where the entry stands in the name of the third party the assessee satisfies the Income-tax Officer as to the identity of the third party and also supplies such other evidence which will show, prima facie, that the entry is not fictitious, the initial burden which lies on him can be said to be discharged by him. It will not thereafter be for the assessee to explain further how or in what circumst....