Judgment

SHAH, J.: M/s. Indian Woollen Textiles Mills Amritsar -hereinafter called the assessee -had branches at different places in India, one of which was an industrial undertaking conducted in the name of Eldee Velvet and Silk Mills-called for the sake of brevity "Eldee . "Eldee had advanced Rs. 3,21,460/- to another concern, the Bombay Fine Worsted Manufacturers Castle Mills-hereinafter called Castle . In the assessment year 1951-52, the assessee claimed under S. 15C of the Indian Income-tax Act 1922, exemption from tax in respect of 6 per cent of the capital employed in Eldee as a newly established undertaking and sought to include in the computation of the capital so employed Rs. 3,21,460/- advanced to Castle . The Income-tax Officer, Special Circle, Amritsar, and the Appellate Assistant Commissioner rejected the claim. But the Income-tax Appellate Tribunal modified the assessment and directed inclusion of the amount advanced to Castle in the computation of capital invested for the purpose of S. 15C. An application submitted under S 66(1) of the Indian Income-tax Act to the Tribunal to refer a question which it was contended by the Commissioner arose out of the ord