( 1 ) A question of some importance relating to the applicability of Section 49d of the Indian Income-tax Act, 1922, in the matter of granting relief to the assessee in respect of the dividend received by the assessee on its investment in shares in joint stock companies in England arises in this reference made under Section 66 (1) of the said Act by the Tribunal at the instance of the department.

( 2 ) THE question referred by the Tribunal is :"whether, on the facts and in the circumstances of the case, the assessee could be said to have paid income-tax in U. K. by deduction or otherwise in respect of the net dividends of Rs. 15,266 so as to be eligible for the relief contemplated by Section 49d of the Indian Income-tax Act, 1922?"

( 3 ) TWO main contentions which have been urged and which fall for consideration in the instant reference, are :" (1) Whether the sum deducted from the amount of dividend payable to the assessee constitutes payment of income-tax by the assessee by deduction or otherwise in accordance with the law of U. K. on the said dividend income received by the assessee? (2) Whether in view of the provisions contained in Explanation (iii) in the said