- (1.) The appellant is a public limited company. It was incorporated in the then Indian State of Kotah on 17/1/1945 for carrying on the business of quarrying stones. It is an assessee to income tax. This appeal is filed in pursuance to the certificate of fitness granted by the High court of Rajasthan, Jaipur bench dated 26/11/1979 arising out of the judgment and order dated 30/7/1979 in Income Tax Reference No. 24 of 1970. The said judgment is reported in. The High court considered the validity of the reassessments made on the appellant for the years 1950-51 to 1956-57 as also the legality of the assessments made for the years 1957-58 to 1961-62 in its common judgment dated 30/7/1979 (ITR No. 24 of 1970. In deciding the legality and validity of the reassessments for the years 1950-51 to 1956-57 some aspects were decided in favour of the assessee/appellant. On a consolidated reference made by the Income Tax Appellate tribunal in respect of the Assessment Years 1950-51 to 1961-62, seven questions of law were referred for the decision of the High court. Out of the same the following 5 questions of law, namely Questions 1, 2, 5, 6 and 7, which were answered against the assessee, are still in appeal before us: "1.Whether, on the facts and in the circumstances of the case, the reassessments for the years 1950-51 to 1956-57, were validly made under Section 34 (l) (a) of the Indian Income Tax Act, 1922 2. Whether, on the facts and in the circumstances of the case, the Revenue was entitled to contend that reassessments for the years 1954- 55, 1955-56 and 1956-57 were validly made under Section 34 (l) (b) of the Act 3. Whether an appeal can lie against an order levying penal interest under Section 18-A of the Act for the Assessment Years 1957-58 to 1961-62 4. Whether the assessee Company was entitled to a credit of the amount of excess royalty paid which is held to be in lieu of the income tax and supertax liability of the company 5. Whether, on the facts and in the circumstances of the case, the payment of royalty in excess of Rs. 1,50,000. 00 paid under clause 18 of the lease granted by the government of His Highness the Maharao Saheb of Kotah on 2/5/1945, which has been held to be in lieu of income tax, supertax etc. by the District Judge, Kotah, is a permissible deduction in the Assessment Years 1957-58 to 1960-61 -
(2.) At this stage, it should be mentioned that the assessee has filed Special Leave Petition No. 10840 of 1980, by way of abundant caution against the very same judgment of the High court to be considered in case the certificate granted by the High court is found to be defective orunsustainable. It is unnecessary to consider the said special leave petition on merits separately.
(3.) We heard the counsel.;