O.Chinnappa Reddy, J.

1. For the assessment year 1962-63, the Income-tax Officer assessed the assessee on April 21, 1964, on a total income of Rs. 11,510. In the balance-sheet of the assessee, there appeared cash credits in the names of Hundal Dass Vasu Mal, Chopra Trading Company and five others. The assessee produced evidence before the Income-tax Officer about the genuineness of the cash credits. The Income-tax Officer enquired into the genuineness of the cash credits and accepted them as true. It was^bnly thereafter that he completed the assessment. Later, a huge hundi racket operating on an all-India basis was unearthed and broken. Income-tax Officers all over the country got busy and started further probes irtto the affairs of various assessees. Some of the creditors shown in the balance-sheet of the assessee made confessional statements to the effect that they were lending names and not money. Thereupon, the Income-tax Officer issued a notice to the assessee under Section 148 of the Income-tax Act, 1961, reopened the assessment and added a sum of Rs. 1,60,000 to the income of the assessee. The appeals filed by the assessee to the Appellate Assistant Commissioner and