FLASHAW, J.

1. This is a reference under section 66(I) of the Income-tax Act in which the following question has been referred by the Appellant Tribunal to this court :

"Whether on the facts and in the circumstances of this case the concession contained in section 15C of the Indian Income-tax Act in respect of the industrial undertaking for the manufacturer of handloom fabrics at Ghaziabad is available to the assessee ?"

2. The question arises out of the assessment of 1952-53 covering the financial year 1951-52. The assessee is a company, Webbing & Belting Factory Private Ltd., which had started as a partnership business run by two partners. They were running two factories at Delhi, one situated at Nicholson Road and the other at Bela Road, the business being the manufacture of tapes, works, webbing etc. for supply to the Government Departments during the war. After the war was over, in 1946 one of the partners conceived the idea of manufacturing handloom furnishing fabrics on the lines of manufacturers carried on in South India by a company called the Commonwealth Trust Ltd. He accordingly entered into negotiations with this company which agreed to supply technicians and t