1982 (2) TMI 28

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....etermination in this reference under s. 256(1) of the I.T. Act, 1961 (referred to hereinafter as "the said Act "), are as follows: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that a cash credit for the previous year shown in the assessee's bank pass book issued to him by the bank but not shown in the cash book maintained by him for that....

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....rding to the ITO, were the books of the assessee. The explanation offered by the assessee regarding the genuineness of these credits was not accepted by the ITO and he treated the amount as income from undisclosed sources. On an appeal by the assessee, the AAC confirmed the view of the ITO. On further appeal to the Tribunal by the assessee, an argument was put forward on behalf of the assessee tha....

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....t, and held that it was not a book maintained by the assessee for any previous year as referred to in s. 68 of the said Act. It is from this decision that the aforesaid questions have been referred to us. Section 68 of the said Act says as follows: "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 natu....

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.... that previous year, if the assessee offers no explanation or the explanation offered by him is not satisfactory. As the Tribunal has pointed out, it is fairly well settled that when moneys are deposited in a bank, the relationship that is constituted between the banker and the customer is one of debtor and creditor and not of trustee and beneficiary. Applying this principle, the pass book supp....