Dipak Kumar Sen, J. - (1.) In this reference under Section 256(2) of the Income-tax Act, 1961, at the instance of the Commissioner of Income-tax, West Bengal-II, Calcutta, the question for determination is as follows : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the Income-tax Officer was not justified in apportioning the total expenditure incurred by the assessee as between the several heads of income and treating the appropriate portion thereof as expenditure against the dividend income."
(2.) The assessee is New India Investment Corporation Ltd. and the assessment years involved are 1963-64, 1964-65 and 1965-66. The facts found and/or admitted are as follows : The assessee, an investment company, deals in shares and derives income from business, interest on securities, dividend and other receipts.
(3.) For the assessment years in question the assessee claimed expenditure respectively of Rs. 79,560, Rs. 89,125 and Rs. 63,308. The Income-tax Officer apportioned the expenditure between the other income and the dividend income in a certain proportion and deducted the same on that basis.;