Judgment

P. B. GAJENDRAGADKAR, J. : This is an appeal by the Income-tax Officer Companies, Circle I(1), Bombay and the Union of India and it raises a short question about the construction of S. 35 of the Income-tax Act read with S. 1, sub-s. (2) and S. 13 of the Indian Income-tax (Amendment) Act, 1953 (XXV of 1953). It arises in this way. The Income- Tax Officer, by his assessment order made on October 9, 1952, for the assessment year 1952-53, assessed the respondent, the Bombay Dyeing and Manufacturing Co. Ltd., under the Act. In the said assessment order the respondent was given credit for Rs. 50,603-15-0 as representing interest at 2 per cent on tax paid in advance under S. 18A of the Act. This credit was given to the respondent in pursuance of the provisions contained in S. 18-A, sub-s. (5) of the Act as it then stood. On May 24, 1953, the Amendment Act came into force. Section 1, sub-s. (2) of the Amendment Act provides that "subject to any special provision made in this behalf in the Amendment Act, it shall be deemed to have come into force on the first day of April, 1952". By S. 13 of the Amendment Act, a proviso was added to S. 18A(5) of the Act. The effect of the amendment