1985 (9) TMI 34

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....L J.-In the accounting year relevant to the assessment year 1963-64, the assessee had shown in his accounts the amounts of Rs. 10,000, Rs. 20,000 and Rs. 10,000 credited in the names of (i) Messrs. Tola Singh Sohan Singh, (ii) Messrs. Bhagwan Dass Sant Parkash, and (iii) Messrs. Vashu Mal Ram Lal. The confirmatory letters of the creditors filed by the assessee were duly considered by the Income-ta....

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....enuineness of the credits appearing in the names of Messrs. Tola Singh Sohan Singh and Messrs. Bhagwan Dass Sant Parkash, but restored the order of the assessing authority qua the amount of Rs. 10,000 appearing in the name of Messrs. Vashu Mal Ram Lal. On an application made by the assessee, the Tribunal referred the following question under section 256(1) of the Act for our opinion: " Whether,....

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....were initiated, inasmuch as the assessee failed to disclose fully and truly all the material facts necessary for its assessment. Information was gathered by the Income-tax Officer that the creditors in question are merely name-lenders and they are dealing in hawala business. It is on the basis of this information which he gathered from the cases of the other parties who had dealt with these credit....

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....respect of the credits by the assessee was not true and, therefore, in our opinion, he rightly started the reassessment proceedings. We, therefore, reverse the finding of the Appellate Assistant Commissioner in this regard. " It is not necessary to enter into any detailed discussion on the point involved as the same stands squarely covered by the decision of the Supreme Court in ITO v. Lakhmani....