DIPAK KUMAR SEN, J.

( 1 ) THIS reference arises out of an assessment on one Lalit Mohan Deb for the assessment year 1955-56. The facts as appearing from the statement of the case and the annexures thereto can be shortly stated as follows : assessment for the assessment year 1955-56 was made under Section 23 (3) of the Indian Income-tax Act, 1922. Thereafter, it came to the knowledge of the Income-tax Officer that the assessee had invested a sum of Rs. 39, 102 for construction of a house. The assessee contended that the said sum was received by way of loans, particulars whereof are as follows :----------------------------------------------------------------------------------------------------------------------------------------------------------------

( 2 ) THE Income-tax Officer found that none of the said creditors could have been in a position to advance the amounts and that none of them were assessed to income-tax. He started proceedings under Section 34 of the Indian Income-tax Act, 1922, in the course of which the three creditors appeared before him and were examined. They admitted having advanced the moneys to the assessee. They, however, did not produce any books of account

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