- (1.) AT the instance of the assessee, the Income -tax Appellate Tribunal, Chandigarh Branch, Chandigarh (for short "the relating to the asst. yr. 1975 -76 for the opinion of this Court : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in sustaining the addition of Punjab National Bank, Tohana' -
(2.) DURING the course of examination of the cash book of the assessee relating to the assessment year under consideration, the AO found that the assessee had introduced cash amounting to Rs. 1,10,000 received from the Punjab National Bank, Tohana. On verification from the bank, it was found that the payment from the bank had been received different parties and had, therefore, introduced its unexplained money showing it as receipt from the bank. The not found plausible and hence rejected by the AO. These findings were reversed by the CIT(A). However, on further appeal by the Revenue, the Tribunal restored the addition made by the AO. The Tribunal has recorded its findings in para 8 of its order as under : "We have given our careful considerations to the rival submissions. We are unable to sustain the order of the CIT(A) who statement made by him subsequently before the ITO which was in pursuance of the directions given by him. If he was to to record the statement of the manager. In the statement made by him, the manager has time and again affirmed that producing the same before the IAC in proceedings under s. 144B of the IT Act probably under the impression that his words were final. When he was put to cross -examination by the ITO, he fumbled and made the correct statement which also tallied with the records of the bank. With regard to the statement made by Shri Lakhi Ram, we are of the opinion that no reliance can be placed thereon. He has made contradictory statements against the established procedure of the putting the dates, as pointed out by the ITO, is very important item from the angle of a cashier and it could not be changed by the peon at his will even three days before the date of occurrence. Taking into consideration the totality of the circumstances of the case as discussed above, we are unable to sustain the order of the CIT(A). The same is reversed and that of the ITO is restored."
(3.) WE have heard learned counsel for the parties. Learned counsel for the assessee submits that the Tribunal erred in reversing the view taken by the CIT(A) adopting erroneous approach and without dealing with the reasons given by the CIT(A). The CIT(A) observed : "6. After considering the facts and circumstances of the case and the totality of the circumstances, I would hold that the ITO was not justified in coming to the conclusion that the amount of Rs. 1,10,000 shown as received from the Punjab the cheque in his own handwriting and the repeated confirmation of Shri Lakhi Ram, cashier that the payment was made made by him, which could have been committed by anybody, I would hold that the payment of cheque amounting to Rs. 1973, happened to be bank holidays. Considering the overall picture, evidence on record and the statements of the then manager, Shri O.P. Gupta and Shri Lakhi Ram, cashier, it is clear that the payment against the cheque in question was payments to various parties. In this view of the matter, the addition of Rs. 1,10,000 made by the ITO to the total income of the assessee is deleted. This ground of appeal, therefore, succeeds." ;