RAMASWAMI J.

The assessee in this case carries on business in money-lending. In the assessment year 1961-62, corresponding to the year ending March 31, 1961, there were three cash credit entries in the books of account of the assessee in the names of Vaiyapuri Pillai, Vaira Perumal and Marimuthu Gounder and the amounts that stood to their credit were Rs. 10, 000, Rs. 10, 000 and Rs. 5, 000, respectively. Vaiyapuri Pillai looks after the assessee's lands. Vaira Perumal is a lessee of the assessee and Marimuthu Gounder is a lessee of certain lands belonging to the assessee's close relation. In the course of the income-tax proceedings the assessee was asked to produce evidence as to the source and nature of the above credits. The said three persons were examined by the Income-tax Officer. After considering their evidence, the Income-tax Officer came to the conclusion that the amounts represented the assessee's income from undisclosed sources. This finding was confirmed by the Appellate Assistant Commissioner and the Tribunal. Penalty proceedings were initiated against the assessee by the Inspecting Assistant Commissioner. To the notice issued in these proceedings, the asses