COMMISSIONER OF INCOME TAX Vs. S C GHOSAL
LAWS(CAL)-1976-4-27
HIGH COURT OF CALCUTTA
Decided on April 27,1976

COMMISSIONER OF INCOME-TAX Appellant
VERSUS
S.C.GHOSAL Respondents


Cited Judgements :-

JALAN TIMBERS VS. COMMISSIONER OF INCOME TAX [LAWS(GAU)-1996-8-3] [REFERRED TO]


JUDGEMENT

Dipak Kumar Sen, J. - (1.)In this reference under Section 256(2) of the Income-tax Act, 1961, at the instance of the assessee, S. C. Ghosal, the following questions have been directed to be referred :
"1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in Jaw in holding that the Income-tax Officer was not justified in treating the hundi loans of the amount of Rs. 17,500 as the assessee's undisclosed income for the reasons as in the case of other hundi loans. 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in placing on the department the onus of proving that it was the assessee's own money which was introduced in his business in the guise of bogus hundi loans. 3. If the answer to question No. 2 be in the negative, then whether the Tribunal was right in law in holding that there was no justification for treating any of the hundi loans to be the assessee's undisclosed income and in deleting the whole of Rs. 45,000 and the interest claimed thereon retained by the Appellate Assistant Commissioner on this account."

(2.)The assessment year involved is 1959-60, the relevant previous year being the calendar year 1958. The facts found and/or admitted are, inter alia, as follows: The assessee is an individual and at the relevant time carried on two separate businesses. The first business was in the name of "S. C. Ghosal" in which the assessee dealt in scrap iron. The second business was in the name of "Adhya Sakti Industrial Works". In this business the assessee manufactured items like ridges, pulleys, etc.
(3.)In the assessment for this assessment year the Income-tax Officer came across credit entries in the names of five creditors. The said creditors are (1) Ram Chandra Mohanlal, (2) Laxmichand Daulatram, (3) Seth Naraindas Hotchand, (4) Gopaldas Lalchand, and (5) Bhagwandas Purushottamdas,
;


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