1The question that calls for consideration is: whether on the facts and in the circumstances of the case, the assessment made by the Income Tax Officer for Assessment Year 1962-63 under S.143(3) read with S.147 of the Income Tax Act, 1961 is valid in law.

2 The case concerns the H.E.H. the Nizam's Second Supplemental Family Trust. The trustees of the Trust filed income tax return for Assessment Year 1962-63 on behalf of the beneficiaries on 2-4-1964. Along with the return they filed an application under S.237 of the Income Tax Act, 1961 (for short "the Act") for refund of tax of Rs 20,050.52 deducted at source on interest on government securities and dividends. S.237 of the Act provides for refund and it is as under:
"237. If any person satisfies the Assessing Officer that the amount of tax paid by him or on his behalf or treated as paid by him or on his behalf for any assessment year exceeds the amount with which he is properly chargeable under this Act for that year, he shall be entitled to a refund of the excess."
Under R.41 of the Income Tax Rules, 1962 (for short "the Rules") a claim for refund is to be made in Form 30. This Rule is as under:
"41. (1) A claim for refund under