( 1 ) THE following question has been REFERRED TO by the Income-tax Appellate Tribunal, Delhi Bench a , herein called the Tribunal , in compliance with the directions of this court in I. T. Case No. 9-D of 1962, at the instance of the Revenue.

"whether on the facts and in the circumstances of the case the Tribunal was right in holding that the provisions of section 23a (1) of the Income-tax Act, 1922 were not applicable to the case of Messrs Uttam Singh Duggal and Co. Private Limited, New Delhi, for the assessment year 1955-56. "

( 2 ) THE respondent company, Messrs Uttam Singh Duggal and Company Private Limited, New Delhi, herein called the assessee , is a private limited company carrying on business as a contractor. It maintains its accounts on mercantile basis. The assessment year concerned is 1955-56 and the relevant accounting year is the calendar year ending on December 31, 1954.

( 3 ) THE assessee filed a return showing an income of Rs. 4,65,756. 00, later on revised to Rs. 3,85,225. 00 and finally revised to Rs. 6,62,072. 00, thereby admitting practically, as stated by the Tribunal, that certain amounts had been kept outside the books. The total income, h