Bal Raj Tuli, J.

1. Shri Ramesh Chander, petitioner, is a partner of Messrs. Shiv Iron Traders, Tanda Road, Jullundur City, and Messrs. Katak Ram Ramji Dass, Tanda Road, Jullundur City. These firms carry on the business of purchase and resale of iron and steel on wholesale basis. Another common partner of the two firms is Shri Diwan Chand Aggarwal, father of Ramesh Chander, petitioner. The third partner in Messrs. Shiv Iron Traders is Roshan Lal, brother of Shri Ramesh Chander, while the third partner in Messrs. Katak Ram Ramji Dass is Shri Krishan Dass, son of Shri Ram Parkash. All the three petitioners and the partners of the two firms, petitioners Nos. 2 and 3, are assessees of the income-tax department. Neither the petitioner-firms nor their partners submitted returns of their income for the assessment years 1970-71 and 1971-72. On August 6, 1971, Ramesh Chander, petitioner, was travelling in an Ambassador car which was stopped by Balwant Singh, Traffic Inspector of Police, near Kartarpur at about 11 a.m. Balwant Singh recovered two bags from the car one of which contained currency notes of the value of Rs. 1,61,000 and the other contained a ledger book and some other d