1986 (10) TMI 63

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....tors could not be produced by the assessee. On consideration of the statement of Shri Lalit Ram Tewari, the Assessing Officer came to the conclusion that he did not hold sufficient status to advance a sum of Rs. 8,000 to Rs. 9,000 to the assessee. He also found that the peak deposit in the account of Shri Lalit Ram Tewari was to the tune of Rs. 2,377. As such the same amount was added as the assessee's income from undisclosed sources. Since the assessee had failed to produce the remaining two depositors and no confirmation about the deposits was filed in respect of the deposits made by them the Assessing Officer added the sum of Rs. 6,000 as the amount said to have been deposited by Hari Lal and the sum of Rs. 6,200 said to have been deposi....

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....t sufficient and the assessee has to establish the genuineness of the deposit and the capacity of the depositor to advance the amount. 3. We have considered the rival contentions. As regards the amount deposited by Shri Lalit Ram Tewari is concerned, we find that he was holding licence to sell kerosene. A copy of his licence has been filed by the assessee and the same is paper No. 7 of the assessee's paper book. It goes to suggest that the licence was initially issued to Shri Tewari for the year 1973 and it was subsequently renewed from time to time. Paper No. 5 of the assessee's paper book is the copy of Shri Tewari's account maintained by the assessee. It shows a number of transactions. Paper No. 6 is the copy of depicting the purchase....

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....count of that licence it cannot be believed that he had advanced the amount in question to the assessee. The burden lies on the assessee to prove that Shri Hari Lal had deposited the said amount with it, but the assessee could not produce Shri Hari Lal before the Assessing Officer although the assessee was required to produce him. The authorities below have observed that no confirmation was filed from Shri Hari Lal. Copy of the alleged confirmation has also not been produced before us. In the circumstances, it cannot be held that the deposit by Shri Hari Lal has been established. Even if a letter of confirmation had been filed that would be of little assistance to the assessee, because the capacity of Shri Hari Lal to advance the amount has....