Judgment

SARKAR, J. : The appellant used to carry on both life and other kinds of insurance business. It was what is called in the Life Insurance Corporation Act, 1956 a "composite insurer".

2. The respondent corporation was created by this Act on September 1,1956 and under S. 7 of the Act the terms of which we will have to set out later, all rights appertaining to the life insurance business of an insurer which in the Act is called the "controlled business", became vested in the respondent Corporation on the appointed day, that is, September 1, 1956. Under the orders of assessment to income-tax for the years 1955-56 and 1956 57, the appellant became entitled to certain refunds under the provisions of the Income-tax Act, 1922. The respondent Corporation claimed a part of those refunds under S. 7 and this claim was resisted by the appellant. This dispute was taken to the Life Insurance Tribunal for decision under the Act of 1956 and this Tribunal decided it in favour of the respondent Corporation. The present appeal is against the judgment of the Tribunal.

3. The provisions of the Income-tax Act under which the right to refund arose have to be briefly referred to before we proceed to c