SUSHIL HARKAULI,J. - (1.) THE following questions have been referred for the opinion of this Court: Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that in the case of cash credits in the assessee's books in the names of close relatives, the burden of proof on the assessee under Section 68 of the I.T. Act, 1961 extended to requiring the assessee to establish the nature and source of the amount
(2.) FOR ready reference Section 68 of the Income Tax Act, 1961 (called the ''Act' for brevity) is reproduced below: 68. where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income -tax as the income of the assessee of that previous year. The facts are that the assessee, during the previous year relevant to the Assessment Year 1987 -88, had credit entries in the assessee's accounts showing receipt of Rs. 74,400/ - from the assessee's wife, Smt. Pashupati Devi, and Rs. 69,300/ - from Om Prakash, the minor son of the assessee.
(3.) THE wife of the assessee was assessed to tax and returns were filed under the Amnesty Scheme disclosing total income of Rs. 51,400/ -the breaking being Rs. 15,200/ -, Rs. 18,100/ - and Rs. 18,100/ - for the Assessment Years 1984 -85, 1985 -86 and 1986 -87 respectively. The lady was not assessed to tax either earlier or latter and she did not have any known source of income. It was found from her bank account that a sum of Rs. 50,000/ - was deposited therein on 6.10.1986 and again a sum of Rs. 24,400/ - was deposited in that account on 24.10.1986. Thereafter the sum of Rs. 74,400/ - was withdrawn on 25.10.1986 through cheque, which was given to the assessee.;