P. B. MUKHARJI, ACTG. C. J.

( 1 ) IN this income-tax reference, under Section 66 (2) of the Indian Income-tax Act, the following question requires an answer from this court:"whether, on the facts and in the circumstances of the case, the inference of the Tribunal that remittances to the U. K. came out of the profits earned in India and that the bank overdraft in India had in fact been utilised in carrying on the assessee's business was sustainable in law and whether on such inference the Tribunal was right in holding that the income-tax authorities were not justified in disallowing any part of the bank's interest on the overdraft ?"

( 2 ) THE facts giving rise to this question lie within a small compass. The assessee is a sterling company and its status is that of a non-resident under the Indian Income-tax Act, 1922. The assessment years involved in this reference are 1958-59, 1959-60, 1960-61 and 1961-62, for which the corresponding previous years are the calendar years 1957, 1958, 1959 and 1960, respectively. The assessee-company owns tea gardens in the taxable territories. This tea is mostly exported to foreign countries. As a non-resident company, it has remitted profits from

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