COMMISSIONER OF INCOME TAX Vs. LALIT MOHAN DEB

JUDGEMENT

(1.) This reference arises out of an assessment on one Lalit Mohan Deb for the assessment year 1955-56. The facts as appearing from the statement of the case and the annexures thereto can be shortly stated as follows : Assessment for the assessment year 1955-56 was made under Section 23(3) of the Indian Income-tax Act, 1922. Thereafter, it came to the knowledge of the Income-tax Officer that the assessee had invested a sum of Rs. 39, 102 for construction of a house. The assessee contended that the said sum was received by way of loans, particulars whereof are as follows : <FRM> -------------------------------------------------------------------------------- Rs. -------------------------------------------------------------------------------- (a) Loan from Dhirendra Chandra Majumdar ... 13,151 (b) Loan from Chintabaran Lodh ... 12,151 (c) Loan from Harendra Chandra Das ... 14,000 -------------------------------------------------------------------------------- 39,302 </FRM> -------------------------------------------------------------------------------- --------------------------------------------------------------------------------

(2.) The Income-tax Officer found that none of the said creditors could have been in a position to advance the amounts and that none of them were assessed to income-tax. He started proceedings under Section 34 of the Indian Income-tax Act, 1922, in the course of which the three creditors appeared before him and were examined. They admitted having advanced the moneys to the assessee. They, however, did not produce any books of account to support the advances claimed to have been made by them as loans.

(3.) The Income-tax Officer did not accept the explanation of the assessee or the evidence of the creditors and treated the said amount of Rs. 39,302 as the assessee's income from undisclosed sources.