ISMAIL J.

The Income-tax Appellate Tribunal under section 256 (1) of the Income-tax Act, 1961, has referred the following questions of law for the opinion of this court :

"(1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law and justified in deleting the addition of Rs. 31, 000 made by the Income-tax Officer under the head 'other sources' for 1963-64 assessment ?

(2) Whether the conclusion of the Tribunal in deleting the addition of Rs. 31, 000 is based on a reasonable view of the facts and circumstances of the case ?" *

The assessee is a dealer in crepe soles, raw rubber, etc. For the assessment year 1963-64, the relevant accounting year being the preceding financial year, he returned an income of Rs. 10, 260 under "business". At the time of hearing before the Income-tax Officer, it was submitted for the assessee that the proviso to section 145 (1) of the Income-tax Act was applicable and that the assessee had no objection to the estimate of gross profit as in the preceding year. This resulted in an addition to Rs. 15, 500 to the disclosed trading results. There were also some hundi transactions during the previous year a