( 1 ) IN this reference, under section 66 (1) of the Indian Income-tax Act, 1922, the Income-tax appellate Tribunal (Bombay Bench "b") has referred two questions of law our opinion. They are :

" (1) Whether initiation of action under section 34 (1) for the purposes of making reassessment for the assessment year 1954-55 has been validly made ? (2) Whether interest on Mysore Durbar Securities has been rightly held to be chargeable to super-tax under the Indian Income-tax Act for the assessment years 1954-55 and 1956-57 ?"

( 2 ) THE facts of the case as disclosed by the statement of the case submitted by the Tribunal to the extent relevant for our present purpose reads as follows :

( 3 ) THESE two reference applications arise out of the reassessments made upon the assessee, a public company, for the assessment year 1954-55 by taking recourse to the provisions of section 34 and the original assessment made upon it for the assessment year 1956-57. The corresponding previous years are the calendar years 1953 and 1955. The dispute between the assessee company and the department is in regard to the levy of corporation tax, more popularly known as super-tax, on income derived by t