Srinivasa Iyengar, J.—The Income Tax Appellate Tribunal, Bangalore Bench, has referred the following question for the opinion of the court :

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in uphold the assessment of the sum of Rs. 32,58,500 as the income of the assessee for the assessment year 1960-61?"

2. An assessment has been, made on the assessee for the assessment year 1960-61 on December 5, 1961, which resulted in a loss of Rs. 12,599 being computed., Subsequently proceedings were started under s. 147(a) of the I. T. Act, 1961, on the grounds that a sum of Rs. 32,58,500 has been received by the assessee purporting to be a loan from M/s. Parsons & Whittemore Commerce Ltd. Of Canada, but really it was not a loan but some commission paid to 6the assessee and, therefore, must be treated as business income. The assessee resisted the claim, but the ITO took note of certain circumstances and came to the conclusion that the amount should be treated as income received from business and concluded the assessment.

3. The reasons given by him to reach that conclusion were-

(i) No correspondence has been produced before him to show that p