MITTER, J.

1. TWO questions have been referred to this Court, one under s. 66(1) and the other under s. 66(2) of the Act, in two separate references which are hereby consolidated. The questions are as follows:

"(1) Whether, on the facts and in the circumstances of the case, the assessee-company is entitled to rebate of one anna per rupee on the undistributed balance of the profits as provided in cl. (i) of the proviso to Item B of Part I of the Schedule to the Finance Act, 1955 ? (2) Whether, on the facts and circumstances of the case, the Tribunal was correct in holding that the provisions of proviso (b) to s. 23A(1) of the IT Act were not applicable to the assessee-company for 1955-56 ?"

2. THE facts are as follows : THE assessee is a limited company in which the public are not substantially interested. For the asst. yr. 1955-56, the relevant accounting year ending on 30th Nov., 1954, the assessee was assessed on a total income of Rs. 10,53,739. THE gross income-tax and corporation tax computed on the above was Rs. 4,57,711. THEre was thus a sum of Rs. 5,96,021 available for distribution to the shareholders. THE company declared a dividend to the extent of 62 per cent. of