R B MITTAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This petition is filed under Section 256(2) of the Income-tax Act (for short 'the Act') against the decision of the Income Tax Appellate Tribunal, Hyderabad A-Bench in R.A.No. 36/Hyd/1993 dated 30-04-1993. The petitioner/assessee filed an application before the Income Tax Appellate Tribunal under Section 256(1) of the Act seeking the following questions, said to be questions of law arising out of the order of the Income Tax Appellate Tribunal dated 15-12-1992 to this Court for its opinion.

(2.) The material facts that led to filing of the present I.T.C. be stated briefly as under: The petitioner/assessee who is assessed in the status of 'individual' carries on business in Iron and Steel Scrap at Visakhapatnam. For the assessment year 1987-88, the petitioner filed return declaring an income of Rs. 99,210/- During the course of assessment proceedings, the Assessing Officer found certain cash credits in the names of certain persons. After 'investigation, the Assessing Officer came to the prima facie conclusion that the assessee had not proved creditworthiness of the parties and genuineness of the transactions.

(3.) The assessee submitted that the loans in question were taken from the parties through Pay Orders, Demand Drafts or Cheques, that the parties were identifiable and that the loans were genuine. The Assessing Officer summoned the parties and recorded their depositions.