TMI Blog1940 (11) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax required to state a case to the High Court on certain alleged questions of law arising out of the orders of assessment made by the Department in respect of the returns made by this firm for the year 1936-37. The sole question in dispute is what is the amount of productive investments of this firm in the money-lending business, which this firm admittedly does, in addition to sarafi and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was fixed at ₹ 25,000 as there was downward trend of investments. On appeal, the learned Assistant Commissioner of Income Tax, who himself examined the books, found that the books showed that the investments were stated to be just about ₹ 4,000, but he found it impossible to accept the assessees contention as contained in the books because no capital account was kept nor was any lis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Messrs. Duli Chand-Ram Sarup, but there was no account relating to such a firm in the books. A sum of ₹ 46 received from Messrs. Lakhu Ram-Idan was not credited to the khata. The explanations offered were unacceptable to the learned Assistant Commissioner and from these he came to the conclusion that the accounts were incomplete and, therefore, no proper basis for an assessment. The learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not noted in the books. In the case of Labhu Ram, he said that the money was still due to be paid to Labhu Ram but there is no indication in the books of this fact. The explanation offered in the case of Wali Mohammed was that he had written off a sum of ₹ 240 as he had settled for a lower figure than was due. This again was not noted in the books. In the case of Duli Chand-Ram Sarup, it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s alone renders the whole of the account incomplete. In this view of the matter it appears to me that, apart from the irregularities in the method of keeping accounts, there was ample material for the Income Tax Department to come to the conclusion that the books produced by the assessee did not reflect a correct state of his accounts, and, therefore, the Department was entitled to make an asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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