1984 (4) TMI 19

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....rest of Rs. 1,318 on the same ? " The case relates to the assessment year 1964-65. The assessee is private limited company deriving income from business in paper, stationery and machinery, etc. The ITO, in the course of assessment proceedings, found that there were two deposits of Rs. 10,000 each in the names of Gopaldas Mohanlal and Lilaram Govindram of Calcutta on April 23, 1963, and July 23, 1963, respectively. The ITO required the assessee to explain the nature and source of these amounts totalling Rs. 20,000. The assessee submitted before the ITO that these items represented genuine loans taken from the parties concerned. The assessee further submitted that the amounts in question were paid to the assessee by cheques and the assessee....

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....d by the assessee. The assessee also submitted that the brokerage amount was also paid by account payee cheque, vide banker's certificate dated April 24, 1963. The assessee further submitted that the creditors were genuine persons and they had telephones and their names appeared in the Calcutta Telephone Directory also. The assessee further submitted that the loans in question were repaid by the assessee by account payee cheques drawn on Canara Bank Limited and the same was encashed through their bank account. It is true that the letter of request sent by the assessee to the creditors for confirmation of the loan came bank with the postal remark et addressee left ". It seems this was on account of the lapse of time as the loans in questio....

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....ing the nature and the mode of transactions. In the instant case, the transactions were completed through account payee cheques. The creditors gave the amount in question to the assessee by account payee cheques which were encashed by the assessee through his own bank. Not only this, the assessee has also submitted the copy of a certificate of the bank to the effect that the cheques in question, given by the creditors, were honoured in favour of the assessee. Even the brokerage amount on the transaction was also paid through cheques. When the assessee disclosed the names of the creditors and the names of the banks on which the cheques were drawn, the assessee discharged the primary onus and the assessee not only disclosed the identity of th....