1. - The Income-tax Appellate Tribunal, Delhi Bench A, has made this reference for answering the following question of law :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the sum of Rs. 35,302 was the income of the assessee which accrued in Part 'C' State and not in Part 'B' State ?"

2. The assessee, M/s. Mansinghka Bros. (P.) Ltd., Bhilwara, is a private limited company having its head office at Bhilwara which was at the material time in a Part 'B' State. The assessee company had advanced loans to Shree Bijay Cotton Mills Ltd. and to Shree Bijay Sugar Mills Ltd., Bijainagar in a Part 'C' State. The assessee company had earned an income of Rs. 1,10,369 during the accounting year ending 31st March, 1951, which included income from interest amounting to Rs. 35,302. It had an income of interest of Rs. 22,526 from Shree Bijay Cotton Mills Ltd. and Rs. 12,776 from Shree Bijay Sugar Mills Ltd. The ITO by his assessment order dated November 29, 1952, held that the amount of interest accrued to the assessee in a Part 'C' State and as such no rebate is admissible according to the Part 'B' States (Taxation Concessions) Order