BALASUBRAHMANYAN J.

The assessee in this tax case is a registered partnership firm carrying on business in dhall and gram and deriving income therefrom. For the assessment year 1965-66 relevant to the previous year ended March 31, 1965, the assessee filed a return disclosing an income of Rs. 23, 080. During the examination of accounts, which followed the filing of the return, the ITO found a number of cash credits appearing in the assessee's books of account. Before the investigation into the genuineness of these credits and their source could get heated up, the assessee itself came forward and offered for the purposes of assessment, the amount of peak credit appearing from the account books of the year. The ITO accepted that offer and brought to tax a sum of Rs. 30, 000 which he estimated to be the peak credit, as part of the income, over and above what was returned by the assessee. In this process while disbelieving the apparent form of the cash credit entries which figured in the account books as if they represented moneys lent to the assessee, the ITO also disallowed the interest which was credited by the assess.

"in the assessee in the books of account Following the