Court : Income Tax Appellate Tribunal ITAT Nagpur
Reported in : 195629ITR459(Nag.)
This case arises out of a reference under section 66(2) of the Indian Income-tax Act in compliance with the requisition made under that section by the High Court in Judicature at Nagpur by its order dated March 18, 1952.The statement of the case is as follows : The assessee firm does cloth business at Nagpur under the name "Niranjanlal Ramballabh". The partners of the firm are Messrs. Babulal and Niranjanlal. It was registered under section 26A of the Income-tax Act, the registration taking effect from the assessment year 1946-47. On total sales of Rs. 5,79,143 the assessee showed a profit of Rs. 24,191 that is below 4% which was regarded as extremely low. The Income-tax Officer after scrutinising the ledger accounts of various parties in the books of the assessee felt doubtful about the genuineness of certain deposits in the personal account of persons staying in Marwad. As these deposits formed an important factor in the matter of the present assessment he called for the assessee to...
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