JUDGMENT

SABYASACHI MUKHARJI, J. :— These appeals by special leave arise from the decision of the Orissa High Court dated 31st October 1973 refusing to direct the Tribunal to state a case under S. 256(2) of the Indian Income-tax Act, 1961 (hereinafter called the Act) and to refer certain questions said to be questions of law arising out of appellate order of the Income-tax Appellate Tribunal for determination of the High Court. The assessment year involved was 1962-63. There were proceedings - one appeal was related to an assessment order whereby additions were made to the quantum of income disclosed by the assessee and the other was in respect of imposition of penalty under S. 271(1)(c) read with S. 274(2) of the said Act.

2. The questions involved respectively in two applications before the High Court were as follows :

"S. J. C. No. 116 of 1972

1. Whether in the absence of proving confirmation letters and Hundis by the assessee, the assessee has discharged his initial onus by producing merely the confirmation letters and Hundis to prove the nature of the transaction?

2. Whether in the facts and circumstances of the case the Tribunal was right in ordering deletion of Rs. 1, 50,000/-