Judgement

RAMASWAMI, J.: The respondent is a limited company incorporate under the Indian Companies Act, 1913 and carries on business of manufacturing and selling diesel trucks and bus chassis, locomotives and other heavy engineering products. The respondent manufactures diesel trucks and bus chassis in collaboration with the German firm "Daimler Bens A. G." The business of manufacturing locomotives is carried on by the respondent in collaboration with the German firm "Kruss Maffei A. G." For each of the assessment years from 1955-56 to 1961-62, the Income-tax Officer issued a notice to the respondent under S. 43 of the Indian Income-tax Act, 1922 (hereinafter called the Act ) intimating that he intended treating the respondent as the Agents of the two German firms. In pursuance of the notices the Income-tax Officer actually passed orders under S. 43 of the Act treating the respondent as agent of the said two German firms. For the assessment year 1962-63 no notice under S. 43 of the Act had been issued observed upon the respondent by the Income-tax Officer and no order under that section had been passed treating the respondent as the agent of the two German firms. On September 8, 1