Judgment

GROVER, J. :- This is an appeal by special leave from a judgment of the Kerala High court in an Income-tax Reference. Originally C. A. 1111/69 had been brought by certificate but the same has been found to be defective for want of reasons and has, therefore, to be revoked. Special leave was sought and has been granted.

2. The facts may be succienctly stated. The assessee s main source of income was salary from a limited company, (A. V. Thomas & Co. Ltd.). In the previous year ending on 30th March 1964 his total income from salary amounted to Rs. 42,900/-. In making the assessed the Income-tax Officer levied surcharge and additional surcharge in accordance with the rates prescribed by the Finance Act 1963. The assessee preferred an appeal to the Appellate Assistant Commissioner. It was contended before him on behalf of the assessee that the provisions of the Finance Act 1964 did not permit the Income-tax Officer to levy surcharge and additional surcharge in accordance with the provisions of Finance Act of 1963. In other words it was contended that under sub-s. (2) of S. 2 of the Finance Act of 1964 only income-tax was payable in the proportion in which the salary stood to the