( 1 ) THIS reference arises out of the proceedings for the assessment years 1962-63 and 1963-64, the corresponding previous years having ended on 31st December, 1961, and 28th February, 1962, respectively. The income-tax assessments were completed under Section 143 (3) of the I. T. Act, 1961, on a total income of Rs. 58,47,380 and Rs. 31,13,458 on 22nd February, 1964, and 23rd March, 1964, for the two assessment years respectively. The assessee had discontinued its business in India on 28th February, 1962, and had filed a claim under Section 25 (3) of the Indian I. T. Act, 1922, on 27th March, 1962. In the said claim, it was stated by the assessee as under :"with reference to our letter dated 12th March, 1962, and in accordance with the provisions of the above Section whereby no income-tax and super-tax shall be payable by us in respect of the income, profits or gains for the period between the end of the previous year and 28th February, 1962, by virtue of our business having been charged under the provisions of the Indian Income-tax Act, 1918 (VII of 1918), we hereby claim that the income, profits and gains of the previous year shall be deemed to have been