1978 (12) TMI 57

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....riginal assessment for the year, the ITO came to notice from certain slips of paper found in the course of a raid in the premises of M/s. Madhusudan Gordhandas & Co., that the assessee had advanced loan of Rs. 50,000 to M/s. Madhusudan Gordhandas & Co. on 27th Feb., 1974. The entry was admittedly not there in the books of the assessee. In the circumstances, the ITO re-opened the proceeding under s....

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....ssee, clearly showed that the assessee had advanced a sum of Rs. 50,000 to M/s. Madhusudan Gordhandas & Co., on 27th Feb.,1964 and since the assessee's books as produced before the ITO in the course of original assessment proceedings did not show original assessment proceedings did not show any such advance, he contended that the information reasonably led to believe that the assessee's income had....

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....limitation. He also stated that there was no credit or debit entry in the books of the assessee and the entry required to be considered under s. 69 and not under s. 68. Reliance in this behalf was placed on the Supreme Court's decisions in the cases of Calcutta Discount Co. Ltd. vs. ITO(1) and CT vs Onkarmal Meghraj (HUF)(2) and Calcutta and Punjab High Courts decisions in the cases of Chanchal Ku....