Judgment

GAJENDRAGADKAR, C.J.I. [On behalf of himself and K. N. Wanchoo, M. Hidkyatullah and J. R. Mudholkar, JJ.] : This appeal arises from a writ petition filed by the appellant Navnit Lal C. Javeri in the Bombay High Court in which he challenged the validity of S.12(1 B) read with S. 2(6A) (e) of the Indian Income-tax Act, 1922 (No. 11 of 1922), (hereinafter called the Act) as it stood in 1955. The High Court has rejected the appellant s contention that the said section is invalid, and the appellant has come to this Court with a certificate granted by the High Court.

2. The appellant holds 11 out of 845 shares in a private limited company named the Malegaon Electricity Co. (Private) Ltd. (hereinafter referred to as the company). The value of each share is Rs.100. The business of the company is to supply electricity to the residents of Malegaon. Some time during 1955, the appellant took a loan amounting to over Rs. 4 lakhs from the company. A notice was issued to the appellant by the 8th Income-tax Officer under S. 22(2) of the Act calling upon him to make his return for the assessment year 1956-57. The Income-tax Officer computed his income at Rs. 3,58,460. This amount included a