R.M. Kantawala, C.J. - (1.) At the instance of the revenue the following two question are referred for our determination under Sec. 66(2) of the Indian Income Tax Act, 1922 (hereinafter referred to as "the Act" : "1. Whether the Tribunal misdirected itself in law in finding that the sum of Rs. 2,00,000 shown as credited to the deceased's account (sic) assessee's reserve fund account, on March 29, 1956, came out of the withdrawals made by it in the year 1948 ?
(2.) Whether, on the facts and in the circumstances of the case, it was necessary for the department to prove, in order to bring to tax the unexplained cash credit of Rs. 2,00,000 standing in the assess's books during the accounting year, that during the year of account there were condition showing the possibility of the assessee earning large amounts outside the normal course of business - 2. The question referred to relate to the assessment year 1956 -57 for which the relevant previous year ends on March 31, 1956. The assessee is a private limited company incorporated in Miraj State in 1944 with a capital of Rs. 11 lakhs. It carried in business in the manufacture and sale of taxtile goods. There were on Income Tax in Miraj at that time the company obtained concessions by way of exemptions from Income Tax and other taxes under a notification dated October 28, 1945.
(3.) The company maintained accounts, but there were deposits and investments which did not appear in the said books. The deposit outside the books in the year 1946 were as follows : ;