JUDGMENT - S. T. DESAI, J. :

This petition for a writ of certiorari or. a writ of mandamus or a writ of prohibition raises a rather important question of the construction of S. 35 (10) of the Income-tax Act. Sub-section (10) of S. 35 was introduced by amendment brought about by the Finance Act, 1956. We shall have occasion to refer to the amendment little later in our judgment. The facts succinctly stated are these. The petitioner— the New Shorrock Spg. and Mfg. Co. Ltd., which carries on business of manufacturing and selling textiles has its registered office at Ahmedabad. The first respondent is the Income-tax Officer having jurisdiction to assess the petitioner. The assessment years in respect of which this petition arises are 1950-51, 1951-52 and 1952-53

(2) For the assessment year 1950-51 (previous year ending 31-12-1949) the Income-tax Officer had passed an order on 18-1-1951 assessing the total in come of the petitioner-mills at Rs. 30,30,622/-. At that time, in accordance with the provision contain ed in clause (1) of the Proviso to Paragraph B of Part I of the Schedule to the Finance Act of 1950, he allowed the rebate of one anna in a rupee on the undistributed profits of Rs

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