1979 (2) TMI 46

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....ingh, proprietor of Messrs. Gurdit Singh Swaraj Singh, gave a statement on 18th August, 1969, before some other ITO that he was doing hawala business and that the credits appearing in the name of Messrs. Gurdit Singh Swaraj Singh were bogus. Thereupon, the ITO reopened the assessment in the present case under s. 147(a) of the I.T. Act, 1961 (hereinafter called " the Act"), and called upon the assessee to produce further evidence in support of the genuineness of the cash credit in question. On the failure of the assessee to produce any further evidence, the ITO added the sum of Rs. 27,000 to its income as income from undisclosed sources. This addition was also upheld by the AAC in appeal. The Tribunal, while accepting the appeal of the asse....

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....ances, we are of the opinion that the assessee disclosed fully and truly all material facts necessary for its assessment and when that was done, the ITO was not justified to change his opinion on the basis of some uncorroborated evidence that came to his notice later on. " In the subsequent part of the order, the Tribunal found as follows : " In the present case there is absolutely no material on record to prove that the loans in question were really fictitious. The department merely relies upon the statement dated August 18,1969, of Shri Swaraj Singh. But this statement cannot be accepted because the same was never recorded in the presence of the assessee. Since the assessee did not get a chance to cross-examine Shri Swaraj Singh, the st....