| Case ID |
2cec611f-8094-4cde-8ba6-c4e56c4d5bad |
| Body |
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| Case Number |
IT REFERENCE No. 31 OF 1969 |
| Decision Date |
Nov 12, 1970 |
| Hearing Date |
|
| Decision |
The Punjab and Haryana High Court ruled that the cash credit found in the books of the assessee-firm in the name of 'R' was rightly included as income from undisclosed sources. The court found that the Tribunal's determination that the amount was not genuinely deposited by 'R' but was actually brought into the books by the partners of the firm was a factual conclusion supported by the material on the record. Furthermore, the court upheld the Tribunal's cancellation of the penalty imposed under section 28(1)(c) due to the department's failure to establish that the deposit was not genuine. The ruling emphasized that the burden of proof lies with the department when cash is found in the accounts of a third party. |
| Summary |
In the case of Basant Lal Om Prakash v. Commissioner of Income Tax, the Punjab and Haryana High Court addressed significant issues regarding the Income-tax Act, 1961. The case revolved around the assessment year 1959-60, where the Income-tax Officer identified a cash credit of Rs. 20,000 in the books of the assessee-firm, allegedly deposited by 'R', a cashier from a cooperative society. The court critically examined the evidence presented, including statements and account books, concluding that the amount was not deposited by 'R' but was rather income from undisclosed sources. The ruling also highlighted the importance of the Tribunal's role in determining the genuineness of such deposits and the threshold for imposing penalties under the Act. Ultimately, the decision reaffirmed the principles of burden of proof in tax law, emphasizing that the department must substantiate claims regarding undisclosed income. The case serves as a pivotal reference for similar tax-related disputes, emphasizing transparency and accountability in financial reporting. |
| Court |
Punjab and Haryana High Court
|
| Entities Involved |
Not available
|
| Judges |
D.K. Mahajan,
Balraj Tuli
|
| Lawyers |
K.L. Kapur,
M.P. Maleri,
D.N. Awasthy,
B.S. Gupta
|
| Petitioners |
Basant Lal Om Prakash
|
| Respondents |
Commissioner of Income tax
|
| Citations |
1972 SLD 413,
(1972) 83 ITR 356
|
| Other Citations |
S.N. Ganguly v. CIT [1953] 24 ITR 16 (Pat.),
Nabadwip Chandra Roy v. CIT [1962] 44 ITR 591 (Assam),
Ram Kishan Das Munnu Lal v. CIT [1961] 41 ITR 452 (All.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
143,
271(1)(c)
|