CHANDRASHEKHAR, J. - (1.) At the instance of the assessec, the Income -tax Appellate' Tribunal, Allahabad (hereinafter referred to as ' the Tribunal '), has referred to this court two questions of law.
(2.) THE facts of the case have been set out in the order of reference and it is unnecessary to repeat them. It is convenient to take up first, the question No. 2 referred by theTribunal. That question reads : ' Whether, on the facts and in the circumstances of the case, there was any material before the Tribunal to conclude that the payment to theminor is not diversion of income but application of income in view of the charge and liability created by the agreement dated 24th August, 1963?'
(3.) IN the course of its order the Tribunal has observed : ' So far as the story, that the minor is a very lucky person and in case some of his money was invested in business, that business would prosper is concerned, there is no tangible evidence on record. We have already stated above that the amounts have been credited in the account of the minor in these years and further that practically no withdrawals were made. It is certainly a point for consideration that the entire profits have remained in the hands of the assessee which he ploughed back in the the business.';