1. This reference under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), has been made by the Income-tax Appellate Tribunal, Chandigarh Bench, on the application filed by the Additional Commissioner of Income-tax, Punjab, J.&K. and Chandigarh, requesting the Tribunal to refer to this court a question of law which is said to have arisen out of the Tribunals order dated 18th January, 1972, in I.T.A. No. 405 of 1970-71. The Tribunal has referred the following question of law for our opinion :

" Whether, on the facts and in the circumstances of the case and keeping in view the provisions of the Payment of Bonus Act, 1965, the assessee is entitled to claim deduction of bonus of Rs. 6,200 relating to the financial year 1964-65 for the assessment year 1965-66 ? "

2. The assessee in this case is not represented.

3. M/s. Jai Bajrang Nail Indusfpies Prop. Net Ram Tirath Ram Moga (hereinafter referred to as the assessee) is an individual and manufactures nails and certain domestic goods. The reference pertains to the assessment year 1965-66 for which the financial year is 1964-65. In the profit and loss account of this year, the assessee made a provis