Ramaswami, J.

1. In this case the assessee is a Hindu undivided family which carries on the business of the sale and manufacture of vermilion. The assessment year is 1947-48 and the corresponding accounting year is Diwali year commencing on 4-11-1945 and ending "on 24-10-1946. In his return the assessee showed a gross profit of Rs. 8,814 and a net profit of Rs. 402 from the business of vermilion and sindoor. The Income-tax Officer rejected the account book of the assessee on the ground that there was no manufacturing account or any stock account maintained by the assessee and verification was impossible.

The Income-tax Officer therefore estimated the net profit of the assessee to be Rs. 10,877 at a flat rate of 25 per cent, on the amount of the sale. The Income-tax Officer also noticed unexplained cash credits in the account books of the assessee as follow: " A/C Godabari Devi, wife,27-11-45Rs. 1,000 A/C Ramawatar, son22-11-45 7,000 A/C Surajmal, son22-11-45 7,000 TotalRs. 15,000 "

The assessee gave an explanation with regard to the cash credits but his explanation was rejected by the Income-tax Officer who treated the amount of Rs. 15 000 as secret profits from an undisclo