1. - This reference has been made by the Income-tax Appellate Tribunal, Delhi Bench " C ", in compliance with the directions of this court contained in the order dated February 16, 1970, in D.B. Civil Income-tax Case No. 66 of 1969, It arises out of the order dated October 5, 1967, by the Tribunal in Income-tax Appeal No. 11677 of 1965-66.

2. The assessment year under consideration is 1959-60 (ending on March 31, 1959). The assessee, Dr. R. C. Gupta, carries on business under the name and style, Dr. R. C. Gupta & Company, as well as M/s. Laxmi Cycle Industries. He filed a return in the name of Dr. R. C. Gupta and Company, declaring an income of Rs. 3,022 from the property as well as business in cycle and motor parts, etc. He also filed another return in respect of his business carried on under the name and style, M/s. Lax mi Cycle Industries, and returned " nil " income (though the trading and profit and loss account showed a profit of Rs. 248). The ITO, however, did not accept the income as returned by the assessee. He determined the income from property as well as from the business carried on under the name and style, Dr. R. C. Gupta & Company, at Rs. 4,525 and the income