The High Court does not have jurisdiction to grant a stay of recovery of taxes in a reference under the Income Tax Act, 1961, as its jurisdiction is strictly confined to deciding questions of law raised in the reference by its judgment.

( 1 ) IN this application of Dwarka Prasad Bajaj, the assessee, made in the above reference a rule nisi was issued calling upon the Commissioner, West Bengal-I, to show cause why the amount of tax in dispute in respect of the assessment years 1967-68 and 1970-71 which are the subject-matter of Certificate Cases Nos. 347/tr-ASL/74-75, No. 321/ TR-ASL/75-76, No. 346/tr-ASL/74-75 and 2987/tr-ASL/72-73 and the notice for settling a sale proclamation dated the 14th September, 1978, issued by the TRO, Asansol, should not be stayed till the disposal of the above reference. Pending the dispasal of the rule the Commissioner and the TRO, their servants and agents were restrained from giving any effect to and/or taking any steps whatsoever in pursuance of the said certificate cases and the said notice for settlement of sale proclamation. The TRO was farther restrained from realising the disputed amounts of tax in respect of the said assessment years during the pendency of this application.

( 2 ) FOR the assessment year 1967-68, the petitioner in its business of manufacture of mustard oil, disclosed the gross profits in its trading account showing a return of 2. 60%. The respective yields of oil, oil cake and gad as also loss or shortage at 2. 17% in the oil seeds due to refraction and in transit were also disclosed. In the assessment year 1970-71, gross profit in the petitioner's trading account was similarly disclosed oh the basis of a return of 2. 61%. The respective yields of oil, oil cake and gad and loss or shortage of seeds at 1. 86% were shown.

( 3 ) IN the assessment year 1967-68, the ITO while accepting the yield, held that the shortage claimed was excessive and that the gross profits were understated. He added the sum of Rs. 60,020 disallowing the excess shortage claimed, another sum of Rs. 16,925 to the gross profits on estimate and a further sum of Rs. 15,928 in the gad account. Similarly, for the assessment year 1970-71, the ITO while accepting the declared yield added the sum of Rs. 68,611 on account of excess shortage including gad and Rs. 67,653 to the gross profits.

( 4 ) THE petitioner preferred appeals before the AAC who gave some relief to the petitioner and the petitioner's total income was reduced in both the assessment years.

( 5 ) THE petitioner preferred further appeals to the Income-tax Appellate Tribunal. The Tribunal gave further relief to the petitioner reducing the additions in both the said assessment years.

( 6 ) THE petitioner thereafter applied for a reference under Section 256 (1) of the I. T. Act, 1961, which was rejected but on the petitioner's application under Section 256 (2) this court directed the Tribunal to draw up a consolidated statement of case in respect of the said two assessment years and refer the following question of law for the opinion of this court:"whether, on the facts and in the circumstances of the case, there was any material before the Tribunal that in holding 3% G. P. was reasonable and accordingly maintaining to the extent of Rs. 23,000 the addition made by the Income-tax Officer and reduced by the Appellate Assistant Commissioner in the trading account of the assessee during the year ?"

( 7 ) IT is alleged in the petition that subsequent to the said order the petitioner has duly filed the paper book in the proceedings and the reference is pending.

( 8 ) IT is alleged further that from time to time the petitioner and/or its representatives appeared before the ITO concerned and also the TRO, Asansol, and had submitted that as the matter was subjudice before this court the petitioner was not liable to pay the demands raised by the said assessments till the reference was disposed of.

( 9 ) ON or about the 15th September, 1978, the petitioner was served with a notice issued by the TRO, Asansol, dated the 14th September, 1978, under Rule 52 of the Second Schedule to the I. T. Act, 1961, in pursuance of the execution of the said certificate case forwarded