Judgment

S.K. DAS, J. :-(For self and Kapur, J.) This appeal on a certificate of fitness granted by the High Court of Bombay raises a question of interpretation of sub-sc.(10) of S. 35 of the Indian Income-tax Act. 1922. This sub-section is one of a group of sub-sections substituted or inserted in the said section by S. 19 of the Finance Act, 1956 (Act 18 of 1956).By S. 28 of the said Finance Act sub-s. (10) of S. 35 of the Income- tax Act, 1922 came into force on April 1, 1956. The short question before us is, whether on its true construction, sub-s. (10) of S. 35 applies in a case where a company declares dividends by availing itself wholly or partly of the amount on which a rebate of Income-tax was earlier allowed to it under clause (i) of the proviso to Paragraph B of Part I of the relevant Schedules to the Finance Acts, when such dividends were declared prior to the coming into force of the sub-section, that is, prior to April 1, 1956.

2. The facts which have given rise to the appeal are these. The Ahmedabad Manufacturing and Calico Printing Co Ltd., is the appellant before us. The appellant company was incorporated under the Indian Companies Act, 1866 and has its office at Ahme