1. dipak kumar sen, J. Bhagwan Ltd. Calcutta, the assessee, was assessed to income-tax in the asst. yrs. 1959-60 and 1961-62 the relevant accounting years being the calendar years 1958 and 1960. The original assessments were completed on 23rd Feb., 1962 and 31st Jan., 1963. The said assessments have subsequently been modified on appeal before the AAC.

2. SUBSEQUENTLY the ITO initiated proceeding under s. 147(a) of the IT Act, 1961 on the ground that the assessee's income chargeable to tax has escaped assessment. In compliance with notices issued under s. 148 of the Act, the assessee filed fresh returns of income. The ITO held that a number of short terms loans and advances recorded in the accounts of the assessee were not genuine and the said amount represented assessee's concealed income. It was found that the alleged creditors had been carrying on the business of issuing spurious hundis. Accordingly the ITO treated the entire amount of the loans and advances as assessee's income form other sources and the same was brought to tax. The deduction of interest claimed to have been paid by the assessee against the said transactions were disallowed. Being aggrieved the assessee