TaxTMI 
TaxTMI 
1990 (1) TMI 51
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....in its scope and was rebuttable ? (2) Whether, on the facts and in the circumstances of the case and on a correct and true interpretation, the Appellate Tribunal was justified in law in taking the view that the existence of the presumption available under section 132(4A) of the Income-tax Act, 1961, did not do away with the burden which the assessee had of establishing the requisites of cash credits under section 68 of the Act ? (3) Whether, on the facts and in the circumstances of the case and in view of the answers to questions Nos. 1 and 2, the Appellate Tribunal was justified in law in confirming the additions sustained by the Appellate Assistant Commissioner of Income-tax in respect of the various creditors for the assessment yea....
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....d to be incomplete. However, the gathond registers showed that some amounts had been advanced by the assessee and that the assessee had repawned ornaments to various individuals for obtaining loans from them at a lower rate of interest. The Income-tax Officer accepted all the credit entries save 20 credits specified in the order of the Appellate Assistant Commissioner. These 20 credit entries were rejected by the Income-tax Officer as unexplained. The details of these 20 entries which were treated by the Income-tax Officer as unexplained have been given in the order of the Income-tax Appellate Tribunal and it is unnecessary to elaborate the same in view of the limited questions which have been referred for our opinion the amounts represe....
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.... represented by such credits. The Appellate Assistant Commissioner, accordingly, ordered the deletion of such credits from the income as assessed by the Income-tax Officer. The assessee took the matter by way of further appeal before the Income-tax Appellate Tribunal. The Tribunal endorsed the view of the Appellate Assistant Commissioner in regard to the extent and nature of the presumption contemplated under section 132(4A) as well as the applicability of the provision under section 68. The Tribunal observed that the presumption arising under section 132(4A) was in the first place not irrebuttable, and, secondly, it extends only to the identity of the person making the entries or the correctness of the entries, etc. It, however, did not....
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.... of the assessee in the course of the search. A similar presumption may also be made as to the correctness of the contents of the books of account so seized. So also the signature and every other part of the books of account may be assumed to be in the handwriting of the person by whom it is purported to have been written. This presumption cannot, however, have the effect of excluding section 68 when regular assessment is made in regard to the income of the person from whose possession those books of account were seized under section 132. Section 68 provides that 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 e....