1. - The Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, referred the following question for its answer/opinion of this court vide its order dated February 16, 1999.

"Whether, on the facts and in the circumstances of the case the Income-tax Appellate Tribunal was justified in holding that additions made on the basis of material collected during the course of such survey was illegal ?"

2. The Revenue had moved an application for seeking reference on three questions pertaining to the order of the Tribunal in I. T. A. Nos. 765, 663 and 664/JP/92. Out of the three questions, the Tribunal referred only question No. 3 with some modification.

3. The brief facts giving rise to the question referred is that a survey under section 133A of the Income-tax Act was conducted on February 25, 1987, during the course of survey, excess stock was found, thereby addition was made by a sum of Rs. 3,24,544 by the Assessing Officer. Aggrieved by the said addition, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals) where the appeal of the assessee was partly allowed. The assessee and the Department preferred second appeals before the Income-tax Appellate Tribunal.