1980 (6) TMI 21

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....ties and produced letters of confirmation in respect of this contention. The ITO found that the credits were not verifiable and that the letters of confirmation alone did not establish the genuineness of the loans. The ITO, further, observed that the capacity of the alleged creditors to advance the loans in question was not proved. Hence, he held the sum of Rs. 77,500 as the assessee's income from other sources and he also disallowed a sum of Rs. 1,996 claimed as interest on the said deposits. The assessee made an appeal before the AAC. The AAC, in view of s. 68 of the Act, upheld the ITO's order. There was a further appeal to the Tribunal. Before the Tribunal, it was contended that s. 68 had no application to the case of commercial loan....

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....e-tax reference matters has no jurisdiction and, therefore, I respectfully pray that the matter may be released and my objection may be heard by the Chief justice and Mr. Justice T. K. Basu and since my submission is that this court has no jurisdiction I submit that I cannot argue on merits. It is cash credit. The question is that in the absence of the proof of creditworthiness of the creditors I take a different stand and approach so far as the questions are concerned." We are, however, unable to accept Mr. Mukherjee's submission. When a reference application is heard and ultimately a reference is made pursuant to a rule nisi being made absolute, the ultimate reference is not part-heard before the Bench hearing the reference application....