Dipak Kumar Sen, J. - (1.) On the application of M.M. Mehta, the assessee, under Section 256(1) of the I.T. Act, 1961, the Tribunal has drawn up a statement of case and has referred for the opinion of this court the following questions as questions of law arising from its order : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the speculation income earned in the names of Mukesh Mehta and Bhupen Mehta belonged to the assessee for the assessment year 1970-71 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the amount of Rs. 1,800 was income of the assessee for the assessment year 1970-71 ?"
(2.) The admitted facts and/or facts found in the proceedings leading up to the present references are, inter alia, that in the assessment year 1970-71, the previous year being 2025 G.D., the assessee was assessed to income-tax. It was found that some income had arisen in the hands of his minor sons in the said assessment year. On being summoned to show cause why the said income in the hands of his minor sons should not be treated as his benami income, the assessee filed a letter contending that the business was being carried on by him on behalf of his minor sons. It was also contended that the initial capital employed in the said business had accrued in the hands of the minors from gifts. The ITO did not accept the contentions of the assessee and included such income of the said business in the income of the assessee and brought the same to tax.
(3.) During the relevant assessment year, the assessee as the managing director of a company, named, Western Trading Co. Pvt. Ltd. had also obtained the use of a motor car belonging to the said company. On the basis that a benefit of some value had accrued to the assessee, the ITO added a notional sum of Rs. 1,800 to the income of the assessee.;