Judgment

RAMASWAMI, J. : These five appeals consolidated by an order of the Bombay High Court arise out of a Reference made by the Income-tax Appellate Tribunal, Bombay Bench A on January 2, 1959 and decided by the Bombay High Court on September 22, 1962. The High Court granted certificates to appeal against its judgement under S. 66-A of the Income-tax Act, 1922 to both the Commissioner of Income-tax, (Central) Bombay and the assessee. Civil Appeals Nos. 411 to 413 of 1965 are brought on behalf of the assessee and Civil Appeals Nos. 414 and 415 of 1965 are brought on behalf of the Commissioner of Income-tax (Central) Bombay.

2. Hukumchand Mills Ltd. (hereinafter referred to as the assessee ) is a public company incorporated in the previous Indore State. The assessee owns a textile mill there. Up to the assessment year 1949-50 it was being assessed in British India as a non-resident (except in 1948-49 when it was assessed as a resident) on such income as fell within S. 4 (1) (a) or 4 (1) (c) read with S. 42 of the Income-tax Act, 1922 (hereinafter referred to as the Act ). After the Constitution came into force, Indore became a Part B State and the Act was brought into force in