(1.) IN compliance with the directions of this court in D.B. Civil Misc. INcome-tax Reference No. 117 of 1972, the INcome-tax Appellate Tribunal, Jaipur Bench (hereinafter to be referred to as " the Tribunal "), filed a statement of the case and referred the following question under Section 256(2) of the I.T. Act, 1961:
(2.) THE facts of the case, relevant for answering the question under reference, are as under :
(3.) MR. J. P. Joshi, on the other hand, emphasized the fact that Ramesh Chandra -Moondra could not have sold such a nourishing business for a petty amount of Rs. 4,500 and thereafter would have got employed in the same firm for the remuneration of Rs. 250 only. According to MR. Joshi, the very fact of Ramesh Chandra Moondra continuing to control the business and operating the bank account on behalf of the partners indicates that the sale deed was a benami transaction and creation of the partnership a farce.