Sabyasachi Mukharji, J. - (1.) In this application under Section 256(1) of the I.T. Act, 1961, the Tribunal has referred to this court the following two questions: "1. Whether, on the facts and in the circumstances of the case, and in the light of Section 68 of the Income-tax Act, 1961, the Tribunal is right in holding that the sums introduced in the books of the assessee for the year ending 31st December, 1961, but credited before 1st April, 1961 (representing the assessee's income from undisclosed sources), cannot be brought to tax for the assessment year 1962-63 ? (2) Whether, on the facts and in the circumstances of the case, and on a correct interpretation of Section 68 of the Income-tax Act, 1961, the Tribunal is right in holding that the cash credits in the books of the assessee for the previous year ending 31st December, 1961 (relevant to the assessment year 1962-63) and representing the assessee's income from undisclosed sources, but falling within the financial year 1960-61 having not been brought to tax in the assessment year 1961-62 could not be brought to tax for the assessment year 1962-63 ?"
(2.) There is a slight typographical mistake in question No. 1, as it appears, in the dates. It should be the books of the assessee for the year ending 31st December, 1961, and not "31st January, 1961", and there is a similar mistake in question No. 2.
(3.) The assessment year under consideration is 1962-63. The assessee is a private limited company, which carried on business in purchase and sale of iron goods. The accounting period under consideration according to which the books of account were maintained by the assessee is the year ended 31st December, 1961. On going through the books of accounts relating to the accounting period ended 31st December, 1961, the ITO noticed credits in eleven different accounts. He proceeded to enquire into the credits and eventually came to the conclusion that the assessee was not able to tender satisfactory explanation. The relevant accounts considered have been detailed in the order of assessment. Eventually, the ITO brought to tax an amount of Rs. 6,44,744, which was the aggregate of the peak credits as computed by him with reference to the credits and debits as appearing in such of the eleven accounts considered separately.;