BANERJEE, J. - (1.) THIS is a reference under s. 21 of the EPT Act, 1940, r/w s. 66(1) of the IT Act, made at the instance of the CIT of Excess Profits Tax, West Bengal, for our opinion on the following question :-- "Whether in computing the profits for the standard period under Schedule I of the EPT Act, the London profits (Rs. 66,386) for 1936-37 income-tax assessment were rightly included by the Tribunal ?"
(2.) THERE were five appeals to the Tribunal covering five chargeable accounting periods, viz., ended 31st March, 1940, to 31st March, 1944, respectively, which were disposed of by one order as the point involved in all the appeals was the same. Five applications were made to the Tribunal for reference to the High Court questions of law arising out of the order. The applications were consolidated and one reference has been made. In that reference the question has been asked as stated above. The assessee (respondent before us) is a limited company and has its head office in London. It has three branches in India. The control and management of the business is in London.
(3.) THE assessee filed its return under s. 13(1) of the Act. In the chargeable accounting periods in question the Indian profits of the company exceeded its London profits. THE company accordingly was, under s. 4A (c), sub-s. (b), of the IT Act treated as a resident company. The assessee had chosen as its standard period the previous years for the asst. yrs. 1936-37 and 1938-39. The profits of the assessee for these years as determined in the respective assessments were as follows :--;