| Case ID |
31aacd93-eb66-4ff1-bc50-609421afe551 |
| Body |
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| Case Number |
I.T.As. Nos. 100 and 101/KB of 1984-85 |
| Decision Date |
Mar 30, 1988 |
| Hearing Date |
|
| Decision |
The Income Tax Appellate Tribunal dismissed the departmental appeals regarding the addition of unexplained cash credits under section 4(2-A) of the Income Tax Act. The Tribunal emphasized that the addition of cash credits must be substantiated by specific findings from the Income Tax Officer (I.T.O.) that these credits are not covered by the business income of the respondent. The Tribunal noted that while the I.T.O. has the authority to make both trading account additions and unexplained cash credit additions, each case must be evaluated on its individual facts. The respondent's failure to adequately explain the cash credits resulted in the I.T.O. making additions, but the Tribunal agreed with the CIT (Appeals) that these additions were, in fact, covered by the previously established trading account additions. Thus, the appeals were rejected. |
| Summary |
The case revolves around the Income Tax Appellate Tribunal's decision concerning the assessment of unexplained cash credits under the Income Tax Act, 1922. The Tribunal analyzed the powers of the Income Tax Officer (I.T.O.) to make additions for unexplained cash credits while simultaneously estimating business income. Key points include the burden of proof on the assessee to demonstrate that any cash credits represent income from a source already taxed, and the necessity for the I.T.O. to provide clear findings regarding the nature of these credits. The Tribunal's ruling reinforces the importance of substantiating claims with adequate evidence and the principle that each case's facts can significantly influence the outcome. This case serves as a critical reference for understanding the responsibilities of both the tax authorities and the taxpayers in income tax assessments. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
Farhat Ali Khan, Chairman,
Manzoor-ul-Haque, Member
|
| Lawyers |
Muhammad Farid, D.R. for Appellant
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1988 SLD 54,
1988 PTD 477,
(1988) 58 TAX 35
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1922
|
| Sections |
4(2A)
|