Account-book admissions are not conclusive; unresolved factual and legal questions must be referred for opinion under the reference provision.

An admission in account books is not conclusive proof of the true nature of expenditure, and the assessee may rebut it by showing that the accounts do not reflect the real facts. Where the Tribunal has not properly examined that plea and appears to have relied mainly on an earlier year's decision, the resulting questions arising from its order are fit for reference under the Kerala Agricultural Income-tax Act reference provision. The High Court was therefore required to direct the Tribunal to state the case and refer the questions for opinion, and the assessee succeeded on that point.

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Issues: Whether the Tribunal was required to refer the assessee's questions to the High Court under section 60(2) of the Kerala Agricultural Income-tax Act, 1950, in relation to disallowance of expenditure claimed in the accounts as revenue expenditure.

Analysis: The entry in the assessee's books treating part of the expenditure as capital was only an admission and not conclusive proof that the amount was laid out for maintenance of immature plants. The assessee was entitled to show that the books did not correctly reflect the real facts. The Tribunal's order did not show that this plea had been properly examined, and it appears to have been influenced mainly by an earlier year's decision. In those circumstances, the questions raised were questions arising from the Tribunal's order and required reference to the High Court.

Conclusion: The High Court ought to have directed the Tribunal to state the case and refer the questions for opinion; the assessee succeeded on this point.

Final Conclusion: The appeal was allowed and the Tribunal was directed to refer the questions to the High Court, with no order as to costs.

Ratio Decidendi: An admission in account books is not conclusive, and where the assessee is not clearly shown to have been given a proper opportunity to establish that the accounts do not reflect the true facts, the resulting question of law is fit for reference under the relevant reference provision.

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