Judgment

FAZL ALI J.: This is an appeal from a Judgment of the High Court at Calcutta in a reference under S. 66(1), Indian Income-tax Act, 1922.

2. The facts which are material for the purpose of deciding this appeal, may be briefly stated as follows :

The respondent, Messrs. Isthmian Steamship Lines (hereinafter referred to as the Company ) is a Company incorporated in the United States of America and owns steamships which visit India. The Company s Indian profits which are computed on the basis of "days on round voyage" are assessed to tax under the Indian Income-tax Act as a company through its agents, Messrs. Augus Co. Ltd. In the course of the assessment for the years 1941-42, 1942-43 and 1943-44, the company claimed that its unabsorbed depreciation at the end of 1938-39 should be deemed to be a part of the depreciation allowance for 1939-40 and therefore such unabsorbed depreciation should be allowed to be further carried forward under S. 10 (2) (vi) of the Income-tax Act.

This claim was negatived by the Income-tax Officer, the Appellate Assistant Commissioner of Income-tax and the Income-tax Appellate Tribunal. The Tribunal however, at the instance of the Company, referred t