Judgement

GROVER, J.:- This is an appeal by special leave from an order of the Calcutta High Court directing the Income-tax Appellate Tribunal, B Bench, Calcutta, to draw a statement of case relating to four questions of law which, it was stated, arose out of the order of the Tribunal in the matter of assessment of the appellant which was the assessee in respect of the assessment year 1962-63. The Appellate Tribunal had rejected the application of the Commissioner of Income-tax requiring it to refer those questions to the High Court. The High Court being moved, issued a rule nisi and then made it absolute after full arguments without giving any reasons whatsoever.

2. The assessee is a 100% subsidiary of Imperial Chemical Industries Ltd., incorporated in the United Kingdom (hereinafter referred to as I.C.I. for convenience). I.C.I. advanced large amounts by way of loans to the assessee from time to time. This, it was claimed, was done for subscribing to shares in three Indian Companies called Indian Explosives Ltd., Alkalai & Chemical Corporation of India and Atic Industries Pvt. Ltd., (hereinafter called as I.E.L., A.C.C.I. and A.T.I.C. respectively). Subsequently the assessee tran