Sankar Prasad Mitra, J. - (1.) The assessee in this reference under Section 66(1) of the Indian Income-tax Act, 1922, was carrying on business as distributors of electricity in Mangalore, South Kanara District. The assessment year is 1957-58. The previous year is the year commencing from April 1, 1955, and ending on October 14, 1956.
(2.) The Mysore Government acting under Section 4(1) of the Madras Electricity Supply Undertakings (Acquisition) Act, 1954, took over all the properties of the assessee on October 14, 1956. The assessee did not carry on any business thereafter.
(3.) At the time the assessee was carrying on the business of distribution of electricity it was working under a licence which the Government of Madras had granted in favour of Messrs. Octavious Steel & Company Ltd., dated the 6th May, 1930, The licensee had the right to assign the licence subject to the previous consent of the Madras Government. The licence was assigned to the assessee.;