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JUDGMENT Dulat, J.-This is a reference under section 66(1) of the Income-tax Act made by the Income-tax Appellate Tribunal at the instance of the Commissioner of Income-tax, and it arises out of the assessment of income-tax concerning the assessment year 1947-48. The assessee company had its registered office in Lahore before the. partition. Between June, 1946, and March, 1947, the assessee paid to the Income-tax Officer at Lahore advance tax under section 18A of the Indian Income-tax Act amounting, in all, to Rs. 36,783-8-0. In March, 1952, the Income-tax Officer, Business Circle, Delhi, made an assessment in respect of the assessment year 1947-48 calculating the total income at Rs. 38,916 which was, however, reduced on appeal to Rs. 36,574. Before the Appellate Assistant Commissioner the assessee claimed credit in respect of the advance payment made at Lahore which was, of course, more than the tax payable according to the assessment order, but that claim was negatived on the ground that the amount paid by the assessee to the Income-tax Officer at Lahore had been adjusted against an assessment order made by the Lahore income-tax authorities in January, 1948. The assessee then went in appeal to the Income-tax Appellate Tribunal, and that Tribunal formed the opinion that, because of section 18A(11) of the Indian Income-tax Act, the assessee was entitled to credit for the sum he had paid at Lahore and was further entitled to a refund of the excess. On this view the Appellate Tribunal directed the demand against the assessee to be quashed and appropriate refund to be made. The Commissioner of Income-tax then applied to the Income-tax Appellate Tribunal to refer the questions of law arising in the case to this court, and that Tribunal, finding that two questions of law did arise, has referred the following questions for our opinion: "(1)Whether the assessee was entitled to have an adjustment of the advance tax paid by it under section 18A of the Indian Income-tax Act in Lahore for the assessment year 1947-48 against the demand of tax raised by the Income-tax Officer, 3rd Additional Business Circle, New Delhi, for the assessment year 1947-48 ? (2)Whether the order…

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