1. IN the present proceeding at the instance of the assessee, the only question sought to be referred is as follows ;

"Whether, on the facts and in the circumstances of the case, the Tribunal was lawful to hold that transactions by book entries are not genuine transactions and, therefore, interest payment on debits as a result of such transactions are not allowable as deduction expenditure, specially in the absence of any such observation or finding by the Income-tax Officer to this effect ?"

The brief facts of the case are as follows :

The assessee is assessed in the status of a registered firm. The assessment year is 1972-73 and the relevant previous year ended on December 31, 1971.

The assessee-firm consists of seven partners, viz., Shri Chandra Mohan Gupta, Man Mohan, Brij Mohan Gupta, Jag Mohan Gupta, Anil Gupta, Pankaj Gupta and Sushil Gupta, being sons of one Shri Devi Chand, On January 1, 1971, Shri Devi Chand made a gift of Rs. 25,000 in favour of the Hindu undivided family of Shri Chandra Mohan Gupta. Shri Chandra Mohan Gupta made a gift of Rs. 25,000 in favour of the Hindu undivided family of his brother, Shri Man Mohan Gupta, and Shri Man Mohan Gupta made a gift