1. The assesses is an insurance company and carries on business in life insurance and other insurance business, it has its head office in Bombay and its branches in other parts of India including Indian States. During the two years under reference, the assessee company earned profits of Rs. 65,203/- and Rs. 1,27,836/- in respect of the non-life assurance business carried on in the Indian States and the Question that had to be considered was whether these two sums were liable to tax both under the Income-tax Act and the E. P. T. Act. The Income-tax Officer came to the conclusion that the profits in respect of Indian States insurance policies arose in British India and hence the immunity from tax in respect of these profits claimed or sought by the company could not be granted. The asses-see appealed to the A. A. O. and the A. A. C, held that the income in respect of this insurance had accrued in the Indian States and therefore he came to the conclusion that these amounts were not liable to tax. Prom this decision the Commissioner appealed to the Tribunal. It is important to note that the only ground of appeal taken by the Commissioner was that the learned A. A. C. erred in h