COMMISSIONER OF INCOME TAX Vs. ADAM C P

JUDGEMENT

(1.) THE assessee is a timber merchant and a coupe contractor at Pallikandy, Calicut. THE assessment year is 1964-65. THE following questions have been referred to us by the Income-tax Appellate Tribunal, Cochin Bench, at the instance of the Commissioner of Income-tax, Kerala:

(2.) THE assessee had made the following credit entries in his books of accounts:

(3.) SECTION 68 of the Income-tax Act, 1961, reads as follows: