Sudhindra Mohan Guha, J. - (1.) Upon an application of the CIT, West Bengal-Ill, Calcutta, under Section 66(2) of the Indian I.T. Act (Act XI of 1922), the Tribunal has drawn up a statement of the case and referred the following question to this court for decision : " Whether, on the facts and in the circumstances of the case and on a proper interpretation of Section 23A of the Indian Income-tax Act, 1922, the Tribunal was correct in holding that the assessee was not a company whose business consisted wholly or mainly in the dealing in or holding of investments and on that basis holding that the order of the Appellate Assistant Commissioner vacating the levy of super-tax by the Income-tax Officer was proper ? "
(2.) Admitted facts had it that for the assessment year 1961-62, the assessee-company was assessed to tax of Rs. 17,883 on a total income of Rs. 39,740. Out of the distributable surplus of Rs. 21,857 a sum of Rs. 8,000 only was paid by way of dividend. In the view taken by the ITO the assessee was held to be an investment company liable to further pay Rs. 6,928.50 on account of super-tax then in force.
(3.) The levy of super-tax was vacated in appeal as the AAC found that the bulk of receipts in the hands of the assessee-company consisted of rents and interest. Holdings consisted mostly of property and for that matter the tests for holding a company to be an investment company had not been satisfied.;