1987 (9) TMI 24

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.... assessment year 1968-69. The assessee is a dealer in biri leaves. For the assessment year in question, he showed cash credits of Rs. 80,374 with interest. His claim of credit from others in this regard was not accepted by the Appellate Assistant Commissioner and the Income-tax Appellate Tribunal in the quantum appeals. The sum assessed was Rs. 5,53,340 as against a returned income of Rs. 2,70,451. There being a difference between the returned income and the assessed income of more than twenty per cent., a proceeding for levy of penalty under section 271(1)(c) read with section 274(2) of the Act was initiated. Since the penalty to be levied was likely to exceed Rs. 1,000, the Income-tax Officer referred the matter to the Inspecting Assistan....

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....ite of summons or registered notices to them, they do not, or any of them does not, respond. Mr. Agarwal, learned counsel for the assessee, placed reliance on some of the decisions in which the additions were directed by the High Court in a reference under section 256 of the Act to be struck down. But, in all those cases, the identity of the creditors was fully established since their G. I. R. Nos. had been given and they were all assessees under the Act whose books of account could very well be used for the purpose of verification. That, however, is not the position in the instant case. This court is not in position, from the materials on record, to say with any amount of exactitude as to whether those persons are genuine or not. On the fa....