2020 (10) TMI 515

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....ated 03.04.2009 passed by the Income Tax Appellate Tribunal, Madras, 'C' Bench, ('Tribunal' for brevity) in I.T.A.No.1256/Mds/2008 for the assessment year 1993-1994. The appeal has been filed, raising the following Substantial Questions of Law. 1. Whether on the facts and circumstances of the case, the appellate Tribunal is right in law in confirming the additions made under Section 68 under the Act relating to Naninar Mohammed, Selvam and Manikkam especially when the initial burden of proof was discharged by the assessee and the Department failed to issue summons and allow cross examination as ordered by the Tribunal in its earlier order dated 25.11.2005. 2. Whether on the facts and circumstances of the ca....

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....ble the assessee to produce six sundry creditors before the Assessing Officer for recording statement. The Assessing Officer found that from the 'Anuppu Account' there were several sundry creditors and the assessee stated that they have purchased goods from them. There were totally six persons namely, Pachaiyappan, Selvam, Nainar Mohammed, Jayapal, R.Gajendran and Mani. The assessee was able to convince the Assessing Officer in respect of three persons. However, the Assessing Officer, at the first instance, did not give any opportunity to enable the assessee to examine or cross examine the persons. However on remand by the Tribunal in the earlier round of litigation, the assessee took steps to summon Nainar Mohammed, Selvam and Mani....

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....e of the assessee of the previous year. The proviso under Section 68 of the Act may not be very relevant for the purpose of this case. 5. In terms of the above provision, the onus is on the assessee to explain the sums credited in the books of the assessee. If the explanation offered by the assessee about the nature and source is acceptable to the Assessing officer, then there can be no additions. However, if the Assessing Officer finds the explanation offered by the assessee to be non satisfactory, the sum so credited may be charged to income tax as an income of the assessee. 6. Admittedly in the instant case, the assessee has provided the explanation, such explanation was found acceptable by the Assessing officer for the previous an....