LAWS(APH)-1958-9-14

COMMISSIONER OF INCOME TAX Vs. CHENNABASAPPA G M

Decided On September 09, 1958
COMMISSIONER OF INCOME-TAX, HYDERABAD Appellant
V/S
G.M. CHENNABASAPPA Respondents

JUDGEMENT

(1.) THIS is a reference under Section 66(2) of the Indian Income-tax Act, which arises in the following circumstances.

(2.) THE assessee, a Hindu undivided family, is a manufacturer and dealer in groundnut kernel and oil on a large scale. In its books for the Deepavali year ended 12-11-1947, and for the assessment year 1948-49, there were certain cash credits in favour of several persons totalling a sum of Rs. 41,255/-. THE Income-tax Officer, called upon the assessee to prove the genuineness of these transactions in the four ledger accounts annexed as annexures A to D. As the assesses was unable to prove them to his satisfaction, the Income-tax Officer added these sums to the assessment to cover the unsatisfactory features of the case.

(3.) THE learned counsel for the respondent sought to re-open the question whether the cash credits were properly explained or not, but we do not think he cart succeed in doing so. THE Income-tax Officer was not convinced with the explanation offered by the assessee. THE Appellate Assistant Commissioner as well as the Tribunal acquiesced in the view of the Income-fax Officer that the explanation offered by the assessee was unacceptable. Apart from all that, the assessee himself ultimately had to admit that several of these entries were fictitious ones.