Judgment

RAMASWAMI, J.:- The assessee who is the Kartha of a Hindu Undivided Family was assessed in that status for the relevant assessment year, 1944-45, 1945-46, 1946-47 not only to income-tax but also to excess profits tax. On February 1, 1941 he purchased from Randhi Appalaswamy (hereinafter referred to as the vendor) a spinning mill known as Sri Satyanarayana Spinning Mills, Rajahmundry for a sum of Rs. 54,731. The purchase was made at a period when there was litigation between the sons of the vendor and the vendor in respect of the spinning mill and other properties. The sons had filed a suit against the father, the vendor, claiming the schedule properties including the mill as joint family properties and for partition of the same. The vendor claimed that the properties were his self-acquired properties. The District Judge, Rajahmundry held that the properties were the self-acquired properties of the vendor and dismissed the suit of the plaintiffs. Against the Judgment of the District Judge an appeal was filed in the Madras High Court, being A. S. Nos. 175 of 1938. While the appeal was pending on February 1, 1941 the assessee purchased the mill from the vendor who purported to