ANAND RAM RAITANI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this reference under Section 256(1) of the Income -tax Act, 1961 (for short 'the Act'), the following question has been referred by the Income -tax Appellate Tribunal for the opinion of this court :

(2.) THE facts for answering this reference may be stated thus : This reference relates to the assessment year 1982 -83. The Assessing Officer found that there was a cash credit of Rs. 2 lakhs as on April 1, 1981, standing in the name of six persons including minors. The Assessing Officer asked the assessee to produce the creditors, but the assessee replied that the parties had confirmed the credits by their letters given earlier. The Assessing Officer observed that the assessee did not give any reason for non -production of the creditors in spite of the specific direction given by him. He examined the records of some of these parties and held that those parties would not have made the credits as claimed by the assessee. The Assessing Officer also observed that as the assessee was reluctant to produce the persons for verification, the cash credit could not be accepted.

(3.) THIS reference was heard by this court at some length on March 30, 1994, and after hearing the parties, this court felt that in order to answer the question certain more facts were necessary. Accordingly, an order was passed by this court under Section 258 of the Act by observing thus :