KISHENLAL ROOPCHAND AND CO Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee in this case is a firm called "Kishenlal Roopchand and Company", its place of business being 27, Godown Street, Madras-1. It is engaged in cloth trade as also money-lending. THE partners are Misrilal Lunia and Jayanthraj Lunia.

(2.) THE assessee was originally assessed on a total income of Rs. 66,209 for the assessment year 1951-52, Later, action under Section 34(1)(a) of the Indian Income-tax Act, 1922, was taken on the basis that certain credit entries were found in the accounts of one Pattu Padmanabha Chetty in the name of Champalal Jayanthraj and Kishenlal Roopchand. Based on the credit entries the assessee's assessment was revised by adding Rs. 28,211 to the income as originally assessed. THE revised assessment was challenged in appeal before the Appellate Assistant Commissioner but without success. THEreafter, the assessee went in appeal to the Tribunal and the Tribunal sustained the addition to the extent of Rs. 10,000 alone. At the instance of the assessee the following two questions have been referred to this court for its opinion:

(3.) THE learned counsel for the assessee contends before us that the materials on record cannot form a sufficient basis for a finding that the credit entries in Padmanabha Chetty's accounts really represented the assessee's lending transactions, that the materials on record did not in fact establish any connection between the assessee and the credit entries found in Padmanabha Chetty's accounts, and that the reasoning given by the Tribunal for excluding the two items of credit entries found in the name of Jayanthraj would equally apply to the credit entry found in the name of the assessee.