Allahabad Court November 1960 Judgments

J and T JaIn Vs. Commissioner of Income-tax, U. P. and V. P.

Court: Allahabad

Reported in: [1961]41ITR700(All)

UPADHYA, J. - The question referred for the opinion of this court is : 'Whether in the circumstances of the case the Tribunal was justified in dismissing the appeal as being infructuous ?'The assessee is a registered firm which was assessed to tax for the year 1947-48. It appears that the Income-tax Officer issued a notice under section 34 as in his opinion there were cash credits in the assessees account books amounting to Rs. 1,30,000, which deserved to be considered for inclusion in the assessees total income. He accordingly issued a notice under section 34 calling upon the assessee to file a return of income. The assessee filed the return and in response to the notice issued under sections 23 (2) and 22 (4) offered an explanation in respect of the cash credits noted by the Income-tax Officer. The assessee challenged the validity of the notice under section 34 of the Income-tax Act. The Income-tax Officer overruled the legal objection and held that the sum of Rs. 1,30,000 was the as...