AJIT K. SENGUPTA, J.

( 1 ) IN this reference under Section 256 (2) of the Income-tax Act, 1961, for the assessment years 1978-79 and 1979-80, the following question has been referred to this court :"whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in deleting the addition of Rs. 5,64,631 and Rs. 4,84,205 as unexplained credits and interest thereon for the assessment years 1978-79/1979-80, respectively ?"shortly stated the facts leading to this reference are that the assessee is Messrs. Precision Finance Pvt. Ltd. and the assessment years involved are 1978-79 and 1979-80 for which the accounting periods ended on June 30, 1977, and June 30, 1978, respectively. The business of the assessee-company is loan financing. In the assessment for the assessment year 1978-79, there were two assessments under Section 144 due to non-compliance by the assessee but both the ex parte assessments were reopened under Section 146 of the Income-tax Act, 1961. The present assessment was a third assessment made under Section 143 (3)/146 on March 11, 1986. In the course of assessment proceedings for the year 1978-79, the Assessing Officer found that the followi

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