1. The assessment proceedings out of which this petition for a writ arises have had a chequered career, and what is sought to be challenged on this petition now is an order made by the Appellate Tribunal under Section 66 (5) of the Income-tax Act after the High Court had answered certain questions referred to it.

2. The assessment year with which we are concerned is the year 1942-43 and the accounting, year was the calendar year 1941. The assesses company carried on business in the Holkar State at Indore and was assessed in the status of a non-resident company. During the accounting year it had sales of cloth amounting to Rs. 50,33,183/- and the company itself supplied to the Income-tax Officer an analysis of these sales which the Income-tax Officer by his order accepted. It is essential to set out that analysis in order to understand the contentions of the parties that arise for determination of this writ petition:

It will be noticed that in this table the total sales under items V and VII are Rs. 6,02,911/- and Rs. 4,21,873 respectively. Both these items were subjected to tax by the Income-tax Officer on the basis that the income accrued in British India and, therefore, Se