Dipak Kumar Sen, J. - (1.) This reference under the Income-tax Act, 1961, arises from the income-tax assessment of M/s. P. C. Sharma & Sons, the assessee, in the assessment year 1964-65, the previous accounting year having ended on the 31st March, 1964. At such assessment a cash credit of Rs. 35,000 was found in the name of one Ganeshilal Sharma in the books of the assessee. The ITO rejected the assessee's contention that it was a genuine loan and added back the said sum as income of the assessee from undisclosed sources. The AAC and the Tribunal both confirmed the order of the ITO.
(2.) The assessee made an application under Section 256(1) of the I.T. Act, 1961, asking that the following questions be referred to this court: "1. Whether, on the facts and in the circumstances, the reassessment proceedings under Section 148 of the I.T. Act, 1961, was in accordance with law ? 2. Whether the Tribunal was right in holding that the loan of Rs. 35,000 by Sri G.L. Sharma, who confirmed the loan and explained the source thereof, was not a genuine one ? 3. Whether the Tribunal was right in not considering the fact that the assessee having discharged the initial onus, the burden shifted on to the department ?"
(3.) The Tribunal held that the said questions did not arise from the order of the Tribunal and dismissed the application of the assessee. Thereupon, the assessee made a further application under Section 256(2) to this court. It appears from the records that the assessee invited this court to direct the Tribunal to draw up a statement of case and refer the very same questions which it had raised before the Tribunal in its application under Section 256(1) of the Act set out hereinabove. This court, however, directed the Tribunal to draw up a statement of case in respect of the following question : "Whether, on the facts and circumstances of the case, the finding of the Tribunal that the loan of Rs. 35,000 (rupees thirty-five thousand only) by Shri G.L. Sharma is not genuine, is perverse ?";