Judgment

SUBBA RAO, J. : I agree with the conclusion, but I would prefer not to express my view on the construction of cl. (iii) of sub-s. (2) of S. 10 of the Indian Income-tax Act, 1922.

2. SHAH, J. (For himself and SIKRI, J.) : The Bombay Steam Navigation Company Ltd. which plied its passenger and ferry services on the Konkan coast and in the Bombay harbour was amalgamated with effect from June 30, 1952 with the Scindia Steam Navigation Company Ltd.- hereinafter called "the Scindias". The scheme of amalgamation was sanctioned by the High Court of Bombay and the Scindias were authorised by the scheme to float and establish a joint stock company with the object of taking over the services on the Konkan coast and in the Bombay harbour which were originally plied by the Bombay Steam Navigation Co. Ltd. Pursuant to this authority the Bombay Steam Navigation Co. (1953) Private Ltd.-hereinafter called "the assessee Company" was incorporated on August 10, 1953. The assessee Company contracted with the Scindias on August 12, 1953 to purchase certain steamers, launches, boats, barges, buildings, furniture, fixtures and vehicles for consideration provisionally estimated at Rs. 80 lakhs. It wa