1. At the instance of the Revenue, the Income-tax Appellate Tribunal has referred the following two questions of law for the decision of this Court.

"1. Whether cm the facts and in the circumstances of the case and also in view of the fact that the original assessment has not been set aside, the Commissioner of Income-tax (Appeals) has only deleted the addition of Rs. 90,000/- made, the Tribunal is justified in not considering the case on merits?

2. Whether on the facts and in the circumstances of the case the Tribunal is right in law and fact in holding that the question of restoration of the addition made in the gross profit does not arise at present and is not the 'order' of the Tribunal vitiated for not considering the issue on merits?"

The respondent is this reference is an assessee to income-tax. We are concerned with the assessment year 1975-76.

2. The assessee is a whole-sale dealer in textiles. For the year 1975-76 the book results were rejected and a gross profit wan estimated by the Income-tax Officer. He made an addition of Rs. 90,000/- to the income returned. The assessment order is dated 7-e-1978. In appeal the Commissioner of Income-tax (Appeals) (in short, t