1977 (8) TMI 46

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....ferred the following question for the opinion of the court : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding the addition of Rs. 1,01,000 as concealed income of the assessee ? " The year of assessment is 1960-61. Assessee's father-in-law, Sivji Nathubhai, was engaged in business in manganese and iron ores. He having died in 1964 and the a....

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.... however, claimed before the Income-tax Officer that in most of the cases there were opening balances which had to be taken into account in working out the peak credits. It was further claimed that in the case of M/s. Chaturbhuj & Co. of Titilagarh the transactions could be verified. The Income-tax Officer instead of making any verification as suggested treated the peak credit of Rs. 2,31,000 as i....

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....y for the assessee relies on a letter written by his client to the Income-tax Officer which is annexure " 3 " to the statement of the case. Therein it has been categorically stated that the loans were taken by her father-in-law during his lifetime and he having died in the year 1964, it has indeed become difficult for her to produce the entire evidence for the satisfaction of the Income-tax Office....

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....ced by Rs. 50,000. The reasoning given by the Income-tax Appellate Tribunal to refuse to interfere with the assessment particularly with reference to the addition of Rs. 50,000 seems to be wholly unsustainable. An enquiry should have been made to find out whether the genuineness of the loan of Rs. 50,000 had been established and, if that was accepted, addition of Rs. 1,01,000 would have stood redu....