Dipak Kumar Sen, J. - (1.) The material facts and the proceedings leading up to this reference are, inter alia, as follows:
(2.) M/s. Park Hotel (P.) Ltd., the assessee, obtained by way of assignment the unexpired period of a lease in respect of premises Nos. 3, 5, 7, 9, 11, 13 and 15, Park Street, Calcutta (hereinafter referred to as the said premises), from a firm by the name of Credit Transactors. The assignment was effected by a deed dated September 3, 1966.
(3.) In the assessment year 1971-72, the relevant accounting period ending on March 31, 1971, the assessee executed a sub-lease in respect of a portion of its leasehold interest in favour of M/s. Surrendra Overseas Ltd., another limited company associated with the assessee. The said sub-lease was effected by a deed which was, however, not registered. M/s. Surrendra Overseas Ltd., paid a premium of Rs. 63,13,000 and has been paying rent of Rs. 15,000 per year in respect of the said sub-lease to the assessee. The portion of the said premises under sub-lease was made over to M/s. Surrendra Overseas Ltd. A multi-storeyed building had been constructed in the said portion under sub-lease and M/s. Surrendra Overseas Ltd. had let out the same to various tenants and has been collecting rent from such tenants.;