1935 (12) TMI 35

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..... assesses were not a true and complete record of his business transactions? 2. The assessee Nathu Ram is a money lender and, if we were to accept the arguments of his counsel, a philanthropist. The figures supplied by him show a capital of ₹ 1,09,871 in cash which produced in the year of the assessment a net sum of ₹ 597. He had been able to persuade the Commissioner of Income Tax th .....

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..... s the principal advanced only, giving up interest altogether. He cites two instances, a note or notes for the sum of ₹ 3,366 on which no interest was received when the capital was paid off, and the renewal of notes for ₹ 4,883 without any payment of interest being shown in the books and without any interest being added to the capital sum secured by the notes. As a result of the examina .....

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..... gree with his contention that the procedure of the assessing authority is a judicial one and that he ought to act on evidence. But in our opinion in a case such as this, where money is brought into cash account, he has the right to require a satisfactory explanation of how and why it came in; and in the absence of a satisfactory explanation or if he receives an explanation which he cannot believe, .....

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