COMMISSIONER OF INCOME TAX Vs. GAJANAND SHYAMLAL

JUDGEMENT

(1.) THE Income -tax Appellate Tribunal, Gauhati Bench (hereinafter deferred to as 'the Tribunal'), has referred tha following question of law to the High Court under Section 256(1) of the Income -tax Act, 1961 (hereinafter referred to as 'the Act') :

(2.) THE facts of the case may be briefly stated as follows: The assessment year involved is 1963 -64 and the previous year concerned is 2019 R.N. The assessee filed its return of income on September 27, 1963, declaring an income of Rs. 33,321. On January 29, 1964, the assessee filed a revised return showing an income of Rs. 37,560. The Income -tax Officer computed the total income of the assessee at Rs. 3,84,241 after making additions on account of various hundi loans and cash credits appearing in its books and the assessment was completed on March 16, 1968.

(3.) IN the fresh assessment the Income -tax Officer found that the total amount of cash introduced in the books of the assessee in the form of loans and deposits up to the end of Ram Navami Year 2019 came to Rs. 1,88,050. Out of this amount Rs. 30,000 was credited in the accounts of partners in 2018 R.N. and Rs. 20,000 in 2019 R.N. These amounts had already been offered for assessment. The balance amount of deposits which require consideration was Rs. 1,38,050. The assessee did not claim these deposits as genuine loans. Instead, the assessee filed a letter dated 29th January, 1969, stating that it could not conclusively prove these credits and liked to be taxed on these amounts. The assessee further stated in the said letter that these amounts introduced in the books from time to time were profits from the business being carried on by the firm. The assessee, however, requested that necessary credit should be given on account of the intangible additions made to the income of the assessee for the Ram Navami years 2016 to 2018. The contention of the assessee was accepted and the aggregate amount of intangible additions in these three years was found to be Rs. 69,000 in round figure.