RUNGTA SONS PVT LTD Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This appeal is directed against the judgment and order dated November 3, 1976, dismissing the application filed by the applicant and discharging the rule nisi issued under Article 226 of the Constitution.

(2.) The appellant is an assessee under the I.T. Act. The appellant used to take loans on khata peta, accounts in the usual course of business. In the aforesaid accounts, there were entries in the names of M/s. Surajmall Brijlal, M/s. Bharat Purchasing Company and M/s. Jhunjhunwalla & Sons Pvt. Ltd. in the accounting years relevant for the assessment years 1953-54 and 1954-55 which are the subject-matter of this appeal.

(3.) The appellant duly filed its return of income for the aforesaid assessment years. The ITO issued notices calling upon the appellant to furnish full details and particulars regarding the loans on the aforesaid khata peta accounts and interest paid on those loans. In compliance with those notices the appellant disclosed and furnished those particulars and details to the ITO.