BASIR AHMED SISODIYA Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This appeal takes exception to the final judgment and order dated 21.8.2008 passed by the High Court of Judicature for Raj as than at Jodhpur (for short, "the High Court") in Income Tax Appeal No. 69 of 2006, whereby the appellant's appeal was dismissed and the order of Income Tax Appellate Tribunal, Jodhpur Bench (for short, 'the ITAT) came to be upheld.

(2.) In short, the appellant/assessee was served with a notice under Section 143(2) of the Income Tax Act, 1961 (for short, '1961 Act') by the Assessing Officer (for short, 'Officer') for the assessment year 1998-1999, pursuant to which an assessment order was passed on 30.11.2000. This appeal involves limited challenge to certain addition made under the heads - "Trading Account" and "Credits" in the assessment order. The Officer, inter alia, while relying on the Balance Sheet and the books of account, took note of the credits amounting to Rs. 2,2 6,000/-(Rupees two lakhs twenty-six thousand only). The Officer treated that amount as "Cash credits" under Section 68 of the 1961 Act and added the same in declared income of the assessee (for short, 'second addition'). The Officer then proceeded to compute the income of the assessee for the concerned assessment year. The relevant part of the computation is mentioned below: -

(3.) Aggrieved, the appellant/assessee preferred an appeal before the Commissioner of Income Tax (Appeals), Jodhpur (for short, 'CIT(A)'). The appeal was partly allowed vide order dated 9.1.2003. However, as regards the Trading Account and Credits in question, the CIT(A) upheld the assessment order.