Judgment

SUBBA RAO, J.: This appeal by special leave raises the question of the applicability of S. 25 (4) of the Indian Income-tax Act, hereinafter called the Act, to the assessment in question.

2. One G. A. Chambers was carrying on two businesses, one in the name and style of "Chambers and Co." and the other in the name and style of "Chrome Leather Company . The first business was concerned with export of hides, skins and mica, insurance and shipping brokerage. The said Chambers and Co. was an assessee under the Indian Income-tax Act, 1918. As the business was in a bad way, in or about 1931 G.A. Chambers handed over the management of the said business to his son, K.H. Chambers. The change of management did not bring about any favourable turn in the affairs of the business. The appellant s case is that towards the end of 1932, G. A. Chambers transferred the business to his son, K. H. Chambers, and that after the said transfer, K. H. Chambers carried on the business in his own name till January 1, 1948, when the business was taken over by a limited company. For the assessment year 1948-49 K. H. Chambers claimed relief under S. 25(4) of the Act on the ground that the business had bee