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Income-tax Act, 1922 -- Sections 13, 23 -- Rejection of accounts -- Rough Note book seized from assessee's premises showing receipts not incorporated in the accounts -- Accounts rejected and addition made to declared version -- Whether addition should be limited to the suppressed receipts detected in rough note book -- Held no -- Business transactions of assessee not found to have been recorded in account books faithfully and accounts of assessee properly rejected by Income-tax Officer -- No valid ground, in circumstance, for limiting addition only to those suppressed receipts which Income-tax Officer is able to detect -- Probabilities of case to be considered and estimate to be made with due regard to all relevant facts and circumstances and more especially to past history of case furnishing useful guidance -- Corresponding Sections: Income-tax Ordinance, 1979 -- Section 32(1) -- ORDER The order was passed by K. SALAHUDDIN, Accountant Member. ---This appeal filed at the instance of the Department arises out of the order of the Appellate Assistant Commissioner dated the 30th April, 1965 and pertains to the assessment made on the respondent for the charge year 1961-62. 2. The facts of the case briefly narrated are these, the respondent, hereinafter referred to as the assessee, is an individual, who deals in own manufactured as well as locally purchased readymade furniture; it also derives income from hire of furniture. In the hire account which is only in dispute in this appeal he declared receipts of Rs. 20, 431. The Income-tax officer found that the receipts showed a steep fall from those of the preceding year in which these had been disclosed at Rs. 33,499. Moreover on a surprise visit paid by the Inspector of Income-tax to the assessee's premises on 14th March, 1961 a rough note book in which hire receipts of Rs. 4,225 had been entered was recovered; these receipts had not been incorporated in the regular books of accounts. The Income-tax Officer relying on this fact reached the conclusion that the assessee's account books did not reflect the true position in respect of his hire income. He further found that in the absence of stock register the valuation of…

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