1. - In compliance with the order dated September 12, 1978, of this court passed in D.B. Income-tax Case No. 2 of 1976, the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur (" the Tribunal " herein), has referred the following three questions for our opinion :

"(1). Whether the Income-tax Appellate Tribunal had any material to arrive at its conclusion that diesel of Rs. 14,026 (18,000 litres) recorded on July 4, 1970, in the cash book and the stock register of the applicant-firm represented the suppressed stock ?

(2). Whether the Income-tax Appellate Tribunal was, at any rate, justified in holding that the aforesaid sum of Rs. 14,026 was liable to be included in the total income of the applicant-firm as ' income from undisclosed sources ' ?

(3). Whether the Income-tax Appellate Tribunal was correct in holding that the purchases of diesel worth Rs. 14,026 recorded on July 4, 1970, was ' an expenditure ' within the meaning of Section 40A(3) of the Income-tax Act, 1961 ? "
The assessee-petitioner carries on business in petrol, diesel, kerosene, motor parts, etc., at Banswara. The accounting year of the assessee-firm for the assessment year ended on October 30, 1970. On July 4,