COMMISSIONER OF INCOME TAX Vs. NANDRAM HUNATRAM

JUDGEMENT

(1.) THE following question of law has been referred to this court under Section 256(1) of the Income-tax Act, 1961 :

(2.) RELEVANT facts may be given in short to appreciate the point of law arising out of the appellate order. The assessee is a registered firm of four partners and derives income from various sources. The accounting period in question ended with 24th of March, 1961. The year of assessment is 1960-61. The assessee maintained the mercantile method of accounting.

(3.) IF the debit entry of Rs. 2,18,442 was rejected as not genuine, then there is no question of any adjustment of the credit and debit entries. The credit entry alone stands.