SABYASACHI MUKHARJI, J.

( 1 ) IN this reference under Section 256 (1) of the I. T. Act, the following questions have been referred to this court : "1. Whether, on the facts and in the circumstances of the case, the disposal of the appeal by the Tribunal was in accordance with law ?

( 2 ) WHETHER, on the facts and in the circumstances of the case, the order of remand by the Tribunal was legal and valid ?" 2. In order to appreciate these questions it would be proper to refer to the relevant portion of the order of the ITO. The ITO in his order, inter alia, observed as follows : "in the beginning of September, 1971, it was reported in the press that there had been a violation of the foreign exchange regulation by the bank. For instance, the Statesman (Calcutta edition) of 1st September, 1971, contained the following report; mr. R. B. Shah, Custodian, United Commercial Bank of 10, Brabourne Road, Calcutta, was produced in custody on Tuesday, before Mr. H. N. Sen, Chief Presidency Magistrate, Calcutta, after being arrested on the same day by an officer of the Enforcement Directorate, Department of Personnel, Government of India, under Section 19b ( 1) of the Foreign Exchange Regulation

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