Vaidialingam, J. - (1.) These two appeals, on certificate, by the Commissioner of Income-tax (Central) new Delhi, are directed against the common judgment and order dated February 21, 1967 in Income-tax Reference No.7 of 1961. The reference related to the assessment years 1942-43 and 1943-44. The question of law, referred for the opinion of the High Court under Section 66 (1) of the High Court under Section 66 (1) of the Indian Income Tax Act, 1922 (hereinafter to be referred to as the Act) was as follows:"Whether on the facts and circumstances of the case, the profits and gains in respect of the sales to the Government of India, were received by the assessee in the taxable territories."
(2.) The High Court answered the said question in favour of the assessee as follows: "On the facts and circumstances of the case, the profits and gains in respect of the sales, made to the Government of India, must be deemed to have been received by the assessee outside the taxable territories."
(3.) When Mr. R. H. Dhebar, learned counsel for the Revenue opened the appeals, a preliminary objection was raised by Mr. N. D. Karkhanis learned counsel for the asseseee-respondent that the certificates granted by the High Court are not proper and as such the appeals are not maintainable. The nature of the preliminary objection will be referred to by us in due course. As we are accepting the preliminary objection, we will only refer to the facts in so far as they are relevant for holding that the certificates granted are not proper and as such the appeals are not maintainable.;