COMMISSIONER OF INCOME TAX Vs. PRAFULLA KUMAR MALLIK

JUDGEMENT

(1.) THIS is a reference made under Section 256(1) of the Income-tax Act of 1961 (hereinafter referred to as the Act), at the instance of the revenue, of the following question for determination of this court :

(2.) THE assessee is an individual and maintains accounts according to the calendar year. For the accounting period ending on December 31, 1957 (assessment year 1958-59), he was assessed to income-tax on January 29, 1960. THE accounts showed a cash credit of Rs. 30,000 on February 2, 1957. THE assessee claimed that it was a loan from one Janhabi Charan Roy. He produced an affidavit of the creditor and later the creditor also appeared before the Income-tax Officer to support the loan transaction. THE Income-tax Officer, however, was not satisfied that the amount of Rs. 30,000 entered in the books of account on February 2, 1957, represented a transaction of loan. THE amount was accordingly added as income from a concealed source. THE additon was upheld by the Appellate Assistant Commissioner, but the Appellate Tribunal deleted the amount by saying :

(3.) IN S. Narayanappa v. Commissioner of INcome~tax, [1967] 63 ITR 219, 221 (SC) the Supreme Court with reference to the same provisions again reiterated :