G.C.Bharuka, J.

1. The present case arises out of an order passed by this court under Section 256(2) of the Income-tax Act, 1961, directing the Tribunal to refer the following question of law for its opinion :

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in sustaining the addition of Rs. 30,146 in the trading account ?"

2. The assessee is a Hindu undivided family. It has a rice mill and carries on business of milling rice. The present case relates to the assessment year 1974-75. During this assessment year, the assessee disclosed a turnover of Rs. 16,50,076 and gross profit of Rs. 56,571. Since, according to the Income-tax Officer, certain expenses which ought to have been adjusted in the profit and loss account had been wrongly adjusted in the manufacturing/trading account, he readjusted the gross profit at Rs. 39,264. Further, according to the Income-tax Officer, the readjusted gross profit was too low and so, he called for an explanation from the assessee to explain the reasons for the same. According to the assessee, the main reason for the low gross profit was sales of rice effected to the Government as levy at statutorily fix