Judgment

HEGDE, J.:- This appeal by certificate arises from the decision of the Calcutta High Court in a reference under Section 66 (1) of the Indian Income-tax Act 1922 (to be hereinafter referred to as the Act ). The question referred to the High Court for its opinion reads:

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee. having not been assessed to super-tax for the assessment year 1958-59, the unabsorbed reduction in rebate under clause (i) (a) of the second proviso to Paragraph D of Part II of the First Schedule to the Finance Act, 1957, could not be set off against the rebate available to the assessee under the Finance Act, 1959, and that accordingly the Income-tax Officer was not justified in reducing the rebate of Rs. 16,114/- available to the assessee for the assessment year 1959-60?"

2. Following its earlier decision in Commr. of Income Tax, West Bengal v. Deoria Sugar Mills Ltd. (1971) 80 ITR 408 (Cal), the High Court answered that question in favour of the assessee. Aggrieved by that decision the Commissioner of Income Tax for West Bengal has brought this appeal.

3. The facts material for the purpose of deci