( 1 ) THIS reference arises out of the assessment for the year 1962-63, the relevant previous year in respect of which ended on the 31st March, 1962. The assessee is a private limited company. It carries on business of the manufacture and sale of soap, cocoanut oil, etc. It is also a dealer in bottles, corks, etc. During the relevant assessment year the assessee claimed that it had borrowed Rs. 3,10,000 on hundies from nine different parties of diverse amounts. These parties were Seth Lalchand Ram, Lilaram Girdharam, Biharilal and Co. , Arjundas Srichand, Nandlal Pareshrarn, Gopaldas Mohanlal, Lalchand Kishendas, Dendaram Vasudeb and Tirthadas and Sons. The Income-tax Officer went into the sources of these amounts in the course of the assessment. The assessee was required to furnish evidence to prove the genuineness of the aforesaid hundi loans. Summonses under Section 131 of the Income-tax Act, 1961, were issued to the above parties requesting them to produce their books of account and bank pass books, etc. , for the relevant accounting period for corroboration and verification of the transactions in question. None of these summonses could be served. The a