Summarize the following court judgment. Appeal No. 2453 of 1966. Appeal from the judgment and order dated August 9	 1963 of the Madras High Court in T.C. No. 152 of 1961. R. Venkatram and R	 Ganapathy Iyer	 for the appellant. B. Sen and R. N. Sachthey	 for the respondent. The Judgment of the Court was delivered by Shah	 J. In Sundaram & Company (Private) Ltd. hereinafter called "the Company" the public are not substantially interested within the meaning of section 23A of the Indian Income tax Act	 1922. In dealing with the assessment of income of the Company for the assessment years 1946 47 to 1951 52	 the Income tax Officer	 Central Circle	 Madras	 passed orders under section 23A of the Income tax Act	 1922	 and directed that the total income of the Company as determined in the years of assessment less tax payable be deemed to have been distributed amongst the shareholders of the Company as on the relevant dates of the General Body Meetings. The following table sets out the relevant details 800 Assessment Amount of divi Date of order passed year. dend deemed to under section 23A deeming have been dec dividend to have been declared. lared. 1946 47 46	563 March 18	1952 1947 48 43	959 do 1948 49 47	829 do 1949 50 97	875 do 1950 51 92	591 do 1951 52 25	899 March 30	 1955 3	54	716 On July 7	 1955 the Company in a general meeting resolved that the amount of Rs. 3	54	716/ which was under the orders of the Income tax Officer deemed to have been distributed as ;dividend amongst the shareholders pursuant to orders under section 23A of the Income tax Act	 be distributed as dividend to the shareholders	 and in pursuance of that resolution proportionate part of the dividend due to each shareholder was credited to his account. The Income tax Officer completed the assessment of the Company for the year 1956 57 and determined Rs. 5	69	396/as its total income. The Income tax Officer computed the supertax payable by the Company under the Finance Act	 1956	 at the rate of six annas and nine pies in the rupee of the total income and granted a rebate at the rate of four annas in the rupee in accordance with the provisions of Cl. D proviso (i) (b) & (ii) 	of the Schedule to that Act. Sometime thereafter the Income tax Officer being of the opinion that excessive relief had been granted to the Company within the meaning of section 34 (1) (b) of the Income tax Act	 issued a notice on January 31	 1959 for reopening the assessment for the year 1956 57. The Company filed its return of income in compliance with the notice and contended that the proceedings commenced by the	 Income tax Officer were unauthorised	 because the income of the Company had not been the subject of "excessive relief" within the meaning of section 34(1)(b)	 and that actual distribution of dividends already deemed to have been distributed in accordance with the orders passed under section '23A cannot be taken into consideration for the purpose of reducing the rebate of super tax admissible under the proviso 2 to Paragraph D of the Finance Act	 1956. The Income tax Officer rejected the contentions and ordered that the rebate of super tax to the extent of Rs. 80	978/ be withdrawn. In appeal to the Appellate Assistant Commissioner it was held that in the circumstances of the case	 assessment could be reopened under section 34(1) (b) on the ground that the income had ' been made the subject of "excessive relief"	 but only Rs. 77	600/and not the whole amount of Rs. 3	54	716/ which was deemed to be distributed under orders under section 23A could be taken into 801 consideration as dividend distributed by the Company during the previous year relevant to the assessment year 1956 57. The Commissioner of Income tax appealed to the Income tax Appellate Tribunal. He	 contended that in the circumstances of the case the amount of Rs. 3	54	716/ was liable to be taken into consideration for the purpose of withdrawing the rebate of supertax admissible under the Finance Act	 1956. The Tribunal held that the case of the Company "did not fall within any of the situations contemplated by section 34(1)(b)" and the Company 's income had not been the subject of excessive relief as the rebate of super tax originally granted was out of the tax otherwise computable and not from the assessed income. But the Tribunal confirmed the order of the Appellate Assistant Commissioner directing that Rs. 77	600/ be taken into account in withdrawing rebate of super tax. The Tribunal then referred three questions to the High Court of Judicature at Madras : "1. Whether the Tribunal was justified in disposing of 'the appeal as it did.? 2. Whether the Tribunal was right in law in entertaining the assessee 's contention relating to the applicability	 of section 34(1) (b) under Rule 27 of the Appellate Tribunal Rules ? 3. Whether the setting aside of 'the assessment under section 3 4 (I ) (b) was correct in law ? " The High Court decided in favour of the Company on the first two questions. In considering the third question the High Court observed that the plea of the Company that re assessment proceedings under section 34 (I) (b)	 on the ground of "excessive relief cannot be initiated	 must be accepted. The Court then proceeded to consider whether allowance of rebate to which the assessee was not entitled	 did not amount to assessing income at too low a rate	 and observed that "there can be no question that the rebate of tax rate and a reduction of such rebate is essentially the arithmetic of rate. Reading however the provisions of the Finance Act	 1956	 as a whole in the perspective that its chief aim and object is to prescribe the rate of income tax and super tax	 it seems to us that an assessee escaping some of its provisions and failing to pay the full measure of tax is assessed at too low a rate". The High Court accordingly held that proceedings under section 34(1) (b) could be initiated when rebate in the payment of super tax was ranted to the assessee without reducing it in the circumstances set out in the second proviso to Part 11 of the First Schedule Paragraph D in the Finance Act	 1956	 on the ground that the income	 profits and gains of the Company were assessed to tax 802 at too low a rate. The High Court answered the third question in favour of the Commissioner. Against the order passed by the High Court on the third question	 this appeal is preferred by the	 Company. The Commissioner of Income tax has not challenged the correctness of the decisions on Questions I & 2. We are unable to agree with counsel for the assessee that the first question raised an enquiry not only as to the correctness of the procedure followed by the Tribunal	 but also to the right of the Income tax Officer to initiate a proceeding under section 34(1) (b) to bring to tax rebate which was not reduced. In terms	 the first question relates to a matter of procedure : and in the answer recorded to that question it is not implied that the Income tax Officer had no power to initiate the proceeding under section 3 4 ( 1 ) (b). The third question raised by the Tribunal was defective. The true scope of the enquiry arising out of the argument before the Tribunal was not whether the order of assessment was proper. but whether the proceeding for re assessment was properly initiated under section 34(1) (b). That is how the High Court also understood the question. We therefore re frame the question as follows : "Whether the Income tax Officer was in the circumstances of the case competent to initiate the proceeding under section 34 (I) (b) of the Indian Income tax Act for bringing to tax the excessive rebate granted to the assessee ?" Section 34(1) (b) of the Indian Income tax Act	 as it stood at the relevant time	 provided "If (a) (b) notwithstanding that there has been no omission or failure as mentioned in clause (a) on the part of the assessee	 the Income tax Officer has in consequence of information in his possession reason to believe that income	 profit% or gains chargeable to income tax have escaped assessment for any year	 or have been under assessed	 or assessed at too low a rate	 or have been made the subject of excessive relief under this Act or that excessive loss or depreciation has been computed	 he may in cases falling under clause (a) at any time and in cases falling under clause (b) at any time within four years of the end of that year	 serve on the assessee	 or	 if the assessee is a company	 on the principal officer 803 thereof	 a notice containing all or any of the requirements which may be included in a notice under subsection (2) of section 22 and may proceed to assess or reassess such income	 profits or gains or recompute the loss or depreciation allowance; and the provisions of this Act shall	 so far as may be	 apply accordingly as if the notice were a notice issued under that sub section It was held by the High Court of Bombay in P. section Subraman yan	 Income tax Officer	 Companies Circle I (1) Bombay and Another vs Simplex Mills Ltd.(1) that "the relief referred to in section 34(1) (b) of the Income tax Act	 1922	 can only be such relief as is granted to the assessee by reason of his income	 profits and (rains being chargeable to tax. It is	 therefore	 referable to the various kinds of relief afforded to the assessee under the Act in respect of his income	 profits and gains	 such	 for instance	 as are granted under sections 15A	 15C	 49A	 49B	 49C	 49D and 60 of the Act." This Court affirmed the judgment of the Bombay High Court in P. section Subramanyan	 Income tax Officer	 Companies Circle I (1) and Another vs Simplex Mills Ltd. 2 In Simplex Mills(2) case advance tax paid by the assessee for the assessment year 1952 53 was found refundable and the Income tax Officer allowed interest on the tax paid under section 18A(5) of the Incometax Act	 1922	 as it then stood. The Act was amended by the Income tax (Amendment) Act	 1953	 with retrospective effect from April 1	 1952	 and it was found that interest allowed to the Company was excessive. The Income tax Officer then initiated a proceeding under section 34 (1 ) (b) to reassess the tax on the ground that income for that year had been under assessed and had been made the subject of excessive relief. The Bombay High Court rejected the claim of the Income tax Officer	 and this Court held that the original assessment could not be reopened under section 34	 because it could not be said either that there was under assessment of the income	 or that excessive relief was granted. In the light of that judgment	 the High Court opined that the claim of the Department to initiate a proceeding under section 34(1) (b) on the round that excessive relief was allowed could not be sustained. But the High Court held that a proceeding for reassessment could be initiated on the ground that income had been assessed at too low a rate. Counsel for the Company contends that the High Court was in error in proceeding to enlarge the scope of the enquiry and in entering upon a question which was never mooted before the Tribunal. Section 2 of the Finance Act	 1956	 provides insofar as it is material	 that : (1) (2) 48 1.T.R. 182 (section C.) 804 .lm15 "Subject to the provisions of sub sections (2)	 (3)	 (4) and (5)	 for the year beginning on the 1st day of April	 1956	 (a) income tax shall be charged at the rates specified in Part I of the First Schedule. . (b) rates of super tax shall	 for the purposes of section 55 of the Indian Income tax Act	 1922 (XI of 1922) . . 	 be those specified in Part 11 of the First Schedule. . . . Part 11 of the First Schedule specifies the rates of super tax. Clause D provides : "In the case of every company on the whole of total income Rate Six annas and nine pies in the rupee. Provided that (i) (ii) a rebate at the rate of four annas per rupee of the total income shall be allowed in the case of any company which satisfies condition (a)	 but not condition (b) of the preceding clause; and (iii) Provided further that (i) the amount of the rebate under clause (i) or clause (ii)	 as the case may be	 of the preceding proviso shall be reduced by the sum	 if any	 equal to the amount or the aggregate of the amounts	 as the case may be	 computed as here under : (a) on the amount representing the face value of any bonus shares or the amount of any bonus issued to its share holders during the previous year with a view to increasing the paid up capital	 except to the extent to which such bonus shares or bonus have been issued out of premiums received in cash on the issue of its shares; and at the rate of two annas per rupee. 805 (b) in addition	 in the case of a Company referred to in clause (ii) of the preceding proviso which has distributed to its shareholders during the previous year divi dends in excess of six per cent of its paid up capital	 not being dividends payable at a fixed rate on that part of the said divi . at the rate dends which exceeds 6 per cent. of two annas but does not exceed 10 per per rupee. of the paid up capital; on that part of the said divi at the rate of ' dends which exceeds 10 per cent three annas of the paid up capital; per rupee. Paragraph D read with section 2(b) of the Finance Act	 1956 fixes the rate of super tax payable by Companies for the purpose of section 55 of the Indian Income tax Act. From the super tax declared payable	 in certain conditions rebate is granted	 and that rebate is also related to the total income of the assessee. By the second proviso	 part of the rebate may be withdrawn	 if the Company has in the previous year issued bonus shares or bonus or has distributed dividend in excess of six per cent. of its paid up capital. The super tax and the rebate admissible are both related to the total income	 whereas the reduction of rebate is related to the face value of the bonus shares or of the value of bonus or the amount of dividends distributed. Super tax payable by a Company is therefore determined as a fraction of the total income	 reduced by a percentage of the value of the bonus shares or bonus or dividends distributed. Counsel for the Company contends that the expression "too low a rate" used in section 34(1) (b) must	 having regard to the context in which the expression is used and in the scheme of the Indian Income tax Act	 be regarded merely as the fraction which determines tax liability of the assessee	 but when in computing super tax liability	 the Income tax Officer has after determining the amount by applying the fraction to reduce the resultant by reference to a factor unrelated to total income	 it cannot be said that tax is charged at a certain rate. Counsel says that the Legislature has not used the expression "assessed at too low an amount" but the expression used is "assessed at too low a rate" therefore says counsel for the Company the jurisdiction of the Income tax Officer will be attracted only when the wrong fraction 806 has been applied in the determination of super tax	 and not when the computation of tax depends on other factors. We are unable to accept this contention. The assumption that the expression "rate" has been used in section 34(1) as meaning a fraction of total income is	 in our judgment	 not warranted. By the use of the expression "rate" in the context in which it occurs	 undoubtedly a relation between the taxable income and the tax charged is intended	 but the relation need not be of the nature of proportion or fraction. The expression "rate" ' is often used in the sense of a standard or measure. Provided the tax is computable by the application of a prescribed standard or measure	 though not directly related to taxable income	 it may be called tax computed at a certain rate. We agree with the High Court that the rebate of tax and the reduction of such rebate are essentially matters of measure or standards of rate. The chief aim and object of the Finance Act	 1956	 is to prescribe the standard or measure of income tax and super tax and it seems that an assessee escaping some of its provisions	 and failing to pay the full measure of tax is assessed at too low a rate. But the view we have taken is not sufficient to dispose of the appeal. It may be recalled that the question arising out of the order of the Tribunal was about the competence of the Income tax Officer	 to initiate proceedings under section 34 (I) (b). It is true that it was not argued before the Tribunal on behalf of the Company that on the notice served by the Income tax Officer proceedings for reassessment could only be initiated on the ground that income had been the subject of excessive relief	 and not on any other ground. But the Company did contend that the initiation of the reassessment proceeding was invalid	 and the plea	 that the initiation was invalid because the notice was defective was only tin aspect of the plea raised by the Company. The question is originally raised by the Tribunal	 and as reframed by us	 includes that enquiry. Counsel for the Company did argue before the High Court that in a proceeding to reassess income initiated on a notice that income has been subject to excessive relief	 the Income tax Officer was incompetent to reassess income on the footing that income was assessed at too low a rate	 but the High Court did not record their decision on that plea : they merely suggested that it will be open to the Company to raise the question when the matter is again taken up for consideration. If however the question arising out of the order of the Tribunal was	 as correctly pointed out by the High Court	 one about the "validity of initiation of proceeding under section 34(1) (b)"	 the High Court was bound to decide all aspects of that question raised before them	 before recording an answer : if they did not	 the Tribunal would 807 be powerless to enter upon an enquiry of any other aspect of the question after answer to the question is recorded by the High	 Court. We are unable to agree with the assumption made by the High Court that because a particular aspect of the question of law raised was not specifically argued before the Tribunal	 the High Court cannot deal with that aspect. We are	 in the state of the record before us	 unable to record an answer to the question	 and the case must be remanded to the High Court to determine whether the proceedings were validly initiated on the notice issued against the Company. The notice which was served upon the Company is not included in the paper book prepared for use in this Court. The notice must of necessity be part of the record of the Income tax Officer	 even if it be not on the record of the Tribunal. It will be open to the High Court	 in determining the contention raised by the Company	 to call for a supplementary statement of the case relating to the form and contents of the notice and the validity thereof from the Tribunal. After receiving the supplementary state ment	 if any	 the High Court will proceed to dispose of the third question in the light of the reasons set out by us in this judgment. Costs of this appeal will be costs in the High Court. Y.P. Appeal remanded.

The Income tax Officer issued a notice to the assessee for reopening the assessment for the year 1956 57 on the ground that "excessive relief" within the meaning of section 34(1)(b) of the Income tax Act	 1922 had been granted to the assessee. Rejecting the contention of the assessee that the income had not been the subject of "excessive relief" and therefore the proceedings were unauthorised and that the amount deemed to have been distributed under orders under section 23A could not be taken into consideration for the purpose of reducing the rebate of super tax admissible under proviso 2 to paragraph D of the Finance Act	 1956	 the Income tax Officer ordered that the rebate of super tax granted be reduced. The Appellate Assistant Commissioner held that only a part of the amount of dividend deemed to have been declared by the assessee could be taken into consideration in withdrawing the rebate of super tax. On appeal by the Commissioner	 the Tribunal held that the case of the assessee did not fall within any of the situations contemplated by section 34(1) (b)	 but confirmed the order of the Appellant Assistant Commissioner. On the question "whether the setting aside of the assessment under section 34(1) (b) was correct in law" the High Court was of the opinion that the claim of the department to initiate proceedings under section 34(1)(b) on the ground that excessive relief was allowed could not be sustained	 but held that the proceedings under the section could be initiated on the ground that the income profits and gains of the asses see were " assessed at too low a rate". The High Court did not 'record its decision on the plea of the assessee that in a proceeding to re assess income initiated on a notice that income had been subject to "excessive relief"	 the Income tax Officer was incompetent to re assess income on the footing that income was assessed at too low a rate. In appeal to this Court the assessee contended that (i) the High Court was in error in enlarging the scope of the enquiry and entering upon a question never mooted before the Tribunal and (ii) by the use of the expression "assessed at too low a rate" it was intended that the jurisdiction of the Income tax Officer would be attracted only when the wrong fraction had been applied in the determination of super tax and not when the computation of tax depended on other factors. HELD : (i) The case must be remanded to the High Court to determine whether the proceedings were validly initiated on the notice issued against the asscssee. [807B] 799 The scope of the enquiry arising out of the arguments before the Tribunal was not whether the assessment was proper	 but	 whether the Income tax Officer was in the circumstances of the case competent to initiate the proceeding under section 34(1) (b) of the Income tax Act for bringing to tax the excessive rebate granted to the assessee. The question referred to the High Court had to be reframed accordingly The question	 as framed by the Tribunal	 though defective	 included that enquiry. The High Court was	 therefore	 bound to decide all aspects of that question and it was wrong in making the assumption that because a particular aspect of the question of law raised was not specifically argued before the Tribunal the High Court could not deal with it. [S02D E; 806F H; 807A B] P. section Sutbramanyan	 Income tax Officer	 Companies Circle I (1) and Anr. vs Simplex Mills Ltd. 	 referred to. (ii) The High Court was right in holding that the rebate of tax and the reduction of such rebate were essentially matters of measure or Standards of rate. The expression rate in section 34(1) does not mean a fraction of total income; it is often used in the sense of standard or measure. Provided the tax is computable by the application of a prescribed standard or measure	 though not directly related to taxable income	 it may be said that the tax is computed at a certain rate. The aim and object of the Finance Act	 1956	 is to prescribe the standard or measure of income tax or super tax	 and an assessee escaping some of its provisions and failing to pay the full measure of tax is "assessed at too low a rate". [806B C]