Dipak Kumar Sen, J. - (1.) This reference under Section 256(1) of the Income-tax Act, 1961, is at the instance of the Commissioner of Income-tax (Central), Calcutta. The Tribunal has drawn up a statement of case and referred the following question as a question of law arising from its order: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that neither the entire surplus of Rs. 1,61,186 nor the sum of Rs. 45,845 being a part thereof in the sales tax account was liable to be added in the assessment of the assessee for the assessment year 1962-63?"
(2.) The facts found and/or admitted in these proceedings may shortly be stated as follows :
(3.) At the income-tax assessment of Kumardhubi Engineering Works Ltd., Calcutta, in the assessment year 1962-63 (the corresponding previous year having ended on the 30th November, 1961), the Income-tax Officer found that the assessee maintained a separate sales tax account to which receipts were credited and payments debited. The Income-tax Officer held that the sales tax receipts formed part of the sale price and the payments (except to the extent paid out of the untaxed receipts of earlier years), constituted debits. On this basis, he treated the closing balance of Rs. 1,61,186 in the said amount as income of the assessee.;