Judgment

S. R. DAS J.: This appeal is directed against the judgment pronounced on the 7th September 1931, by the High Court of Judicature at Bombay on a reference made at the instance of the appellant under Section 66(1) of the Indian Income-tax Act, 1922. By an assessment order dated the 31st March 1948 the appellant was assessed by the Income-tax Officer, Bombay, for the assessment year, 1947-1948 on a total income 59 of Rs. 19,66,782 including a sum of Rs. 9,38,011 representing capital gains assessed in the hands of the appellant under Section 12-B of the Act.

The said amount of capital gains was earned by the appellant in the following circumstances. The assessee had a half share in certain immovable properties situated in Bombay which were sold by the assessee and his co-owners during the relevant accounting year which was the calendar year ending on the 31st December 1946 to a private limited company known as Mafatlal Gagalbhai. & Company Ltd. The profit on the sale of the said properties amounted to Rs. 18,76,023 and the appellant s half share therein came to the sum of Rs. 9,38,011 which was included in the assessment under Section 12-B.

2. In April 1948 the appellant appealed