Dipak Kumar Sen, J. - (1.) The unusual facts which have led up to the present reference are shortly as follows I The Southern Bank Ltd., a banking company, had filed three returns of its income in respect of assessment years 1961-62, 1962-63 and 1963-64, respectively, dated the 11th September, 1961, 25th September, 1962, and the 26th June, 1963. The previous years relevant to the said assessment years were the respective calendar years 1960, 1961 and 1962. Under a scheme prepared under Section 45 of the Banking Companies Act, 1949, by the Reserve Bank of India and sanctioned by the Central Government by a notification dated the 19th August, 1964, the Southern Bank Ltd, was amalgamated with the United Industrial Bank Ltd. and was required to close its books of account on the 22nd April, 1964.
(2.) The relevant provisions of the said scheme were, inter alia : (a) From the prescribed date all rights, powers, claims, demands, interests, authorities, privileges, benefits, assets and properties of the Southern Bank Ltd., movable and immovable, including property, rights and assets of every description including all rights of action would stand transferred to and become the properties and assets of the United Industrial Bank Ltd. (b) From such prescribed date all liabilities, duties and obligations of the Southern Bank Ltd. would be and become the liabilities, duties and obligations of the United Industrial Bank Ltd. (c) All contracts, bonds, agreements, powers of attorney, grants of legal representation and other instruments of whatever nature subsisting or having effect immediately before the prescribed date would be effective to the extent as if instead of the Southern Bank Ltd. the United Industrial Bank Ltd. had been a party thereto or as if they had been issued in favour of the United Industrial Bank Ltd. (d) If on the prescribed date any suit, appeal or other legal proceedings of whatever nature by or against the Southern Bank Ltd. would be pending the same would not abate, or be discontinued or be in any way prejudicially affected but would subject to the other provisions of this scheme be prosecuted and enforced by or against the United Industrial Bank Ltd.
(3.) On the 30th January, 1965, the ITO disposed of the pending assessments of the Southern Bank Ltd. by making an order as follows : "It is learnt that the assessee's business was completely taken over by the United Industrial Bank from 24th August, 1964. Therefore, the assessments for the Acct. year 63 (assessment year 64-65) and for the period from 1st January, 1964, to 23rd August, 1964 (assessment year 1965-66), can only be completed on the successor-bank. As the assessee cannot be found, the assessments for the assessment years 1962-63 and 1963-64 are dropped.";