C.K.Banerji, J. - (1.) This reference at the instance of the Commissioner of Income-tax, West Bengal-I, Calcutta, under Section 66(1) of the Indian I.T. Act, 1922 (hereinafter referred to as "the Act"), relates to the assessment years 1951-52 and 1952-53, for which the relevant previous years ended on the 31st March, 1951, and 31st March, 1952, respectively.
(2.) The assessee is a company resident in India with its mills in Gwalior. The income that accrued in the former State of Gwalior was entitled to concessional treatment while the income that accrued in Part A and C States (as they were then called) were liable to be taxed at full Indian rates of tax as levied by the Finance Acts.
(3.) The facts found and/or admitted as appearing in the statement of the case are as follows : In the assessment for the assessment year 1951-52, originally made on the 14th October, 1955, profits were estimated by the ITO and assessed by him as being Part B State income and at a lower rate.;