C.S.P. Singh, J.

1. This is a reference under Section 256(1) of the Income-tax Act, 1961, of the following question by the Income-tax Appellate Tribunal, Allahabad :

"Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in holding that Clause (iii) of Sub-section (1) of Section 271 of the Income-tax Act, 1961, as substituted by the Finance Act, 1968, was not retrospective in effect and as such not applicable to the assessment years 1960-61 and 1961-62, even though the revised returns were filed after April 1, 1968 ?"

2. The facts leading up to this reference fall within a narrow compass. Two assessment years, viz., 1960-61 and 1961-62, are involved in the present reference. Returns for the assessment years 1960-61 and 1961-62 were filed by the assessee on June 9, 1960 and June 17, 1961, respectively. Assessments of these years were completed and, thereafter, in the course of proceedings for the assessment year 1963-64, the Income-tax Officer got information that certain drafts had been purchased by the assessee in different names from the United Bank of India, Allahabad, and remitted to Calcutta, which transactions were not shown in t