SHAH TRADING CO Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Petitioner seeks reference of the following questions of law of this Court:

(2.) THE aforesaid questions essentially arise out of reassessment which has been made pursuant to the notices issued under S. 147(b) of the Act. At the time of the original assessment for the asst. yr. 1971-72 three cash credits standing in the names of the three standing persons were accepted by the Department. It appears that thereafter statements of those three persons were recorded by the ITO and pursuant thereto notice was issued to the petitioner seeking to reopen the assessment. Having filed before the IT authorities, including the Tribunal, an application under s. 256(1)was filed, which was dismissed by the Tribunal holding that the conditions precedent to the reopening of the assessment existed. The Tribunal concluded that question Nos.1 to 3 were the questions of fact and no question of law arose. Question No.5 was not referred because the Tribunal held that the answer to the said question was obvious as it has been consistently held by the high Courts and the Supreme Court that the onus was on the assessee to prove the genuineness of the cash credits. Dealing with question Nos.4, 6 and 7 the Tribunal again came to the conclusion that these were questions of fact and no question of law arose. Question Nos.8 and 9 were not referred because the Tribunal came to the conclusion that the said questions did not arise from its order because neither any arguments were raised nor did the Tribunal touch upon these questions in their order.