Judgement

S.K. DAS J. - This is an appeal on a certificate granted by the High Court of Judicature at Bombay under sub-s. (2) of S. 66A, Income- tax Act (hereinafter referred to as the Act.). The appellant is the Commissioner of Income-Tax, Bombay, and the respondent is the Provident Investment Co. Ltd., Bombay, hereinafter referred to as the assessee company.

2. The short question which falls for consideration in this appeal is whether a particular transaction, details whereof we shall presently state, entered into by the assessee company in 1946 resulted in capital gains within the meaning of S. 12-B of the Act. The question which was referred to the High Court under S. 66 (1) of the Act was this:

Whether the assessee company made a capital gain amounting to Rs. 81,81,900 within the meaning of S. 12.B, Income-tax Act ? The High Court answered the question in the negative. The appellant being dissatisfied with the judgment and order of the High Court asked for and obtained a certificate from the said High Court that the case is a fit one for appeal to the SC.

3. The material facts may be very shortly stated. The assessee company is a private limited company, the shares of which were h