1981 (12) TMI 9

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.... P. SINGH C.J.-The question of law referred by the Income-tax Appellate Tribunal in this reference under s. 256(1) of the I.T. Act, 1961, is as follows : " Whether, on the facts and in the circumstances of the case, and having regard to the provisions of section 68 of the Income-tax Act, 1961, the Tribunal was justified in confirming the deletion of the amount of Rs. 27,800 considered for asses....

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....ion of the Revenue that the assessee did not discharge the onus of connecting the cash credit deposits with the intangible additions. The Tribunal observed that circumstances did exist to connect the two and that the assessee had excess funds in the form of disallowed expenses and these funds were introduced as alleged cash credits. In the opinion of the Tribunal the link was certainly there and i....

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....ew has been taken by the Punjab High Court in CIT v. Ram Sanehi Gian Chand [1972] 86 ITR 724. Our High Court shares the view of the Punjab High Court in CIT v. Dinanath Dhawale (Misc. Civil Case No. 252 of 1970, decided on 4-4-1972). In that case, the ITO made an addition of Rs. 29,000 which was reduced in appeal to Rs. 19,000. In second appeal it was for the first time contended before the Income....

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....that, the Tribunal was wrong in law in holding so. Reference was also made to s. 68 of the Act. This section 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 explanation offered by him is not, in the opinion of the ITO, satisfactory, the sum so credited ma....