Judgment

S. K. DAS, J. : These are two appeals with special leave from the Judgment and order of the High Court of Hyderabad dated April 10, 1953, in two references under S. 48(3) of the Hyderabad Excess Profits Tax Act. The question which the High Court answered against the assessee in the said references was -

"Whether in the circumstances of the case, the officer of the Excess-Profits Tax Department were right in treating the income of the assessee or the Industrial Trust Fund as income from business."

The High Court answered the question in the affirmative. The point for decision before us is if the High Court correctly answered the question.

2. The relevant facts which led to the question and answer are these. There were two cotton mills in the State of Hyderabad (as it was then known) called Azamjahi mills and Osmanshahi mills. They were public joint stock companies. By a Firman-e-Mubarak of 1929 issued by the then Ruler of the State was formed an institution called the Industrial Trust Fund, the purpose of which was to help large and small industries on behalf of the Government of the State. The management of the Trust was entrusted to a Committee which consisted of three member