PREM NATH MAYOR Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THE ITO conducted a search in the premises of Harbans Lal, a broker of Ludhiana, under Section 132 of the I. T. Act, 1961 (hereinafter referred to as "the Act" ). The records received from the custody of the said Shri Harbans Lal revealed that the assessee had advanced sums aggregating to Rs. 1,65,000 to various parties. While framing the assessment for the assessment year 1971-72, the ITO added this amount of Rs. 1,65,000 as well as a sum of Rs. 9,900 which accrued as interest on this sum to the income of the assessee.

(2.) THE impugned addition was challenged by the assessee before the AAC who passed the following order:

(3.) THE assessee went up in further appeal before the Income-tax Appellate Tribunal, Amritsar, and challenged the jurisdiction of the AAC to restore the case back to the file of the ITO. This appeal was dismissed. At the instance of the assessee, the following two questions of law have been referred to us for our opinion :