Judgment

HEGDE, J.: This is an appeal by certificate under section 66A (2) of the Indian Income-tax Act, 1922 (to be hereinafter referred to as the Act ). The assessee is a Private Limited Co. The assessment year with which we are concerned in this case is 1952-53, the relevant accounting year ending on March 31, 1952. The assessment for that year was completed by the Income-tax Officer on August 4, 1953. He determined the assessee s business profits of the year ended on March 31, 1952 at Rs. 33,096/- subject to the assessee s claim of unabsorbed depreciation brought forward to the extent of Rs. 42,000/- and odd. After setting off the unabsorbed depreciation to the extent of Rs. 33,096/-, he determined the assessee s total income for the assessment year 1952-53 at Nil. In the course of the assessment proceedings, the assessee company informed the Income-tax Officer by its letter of July 2, 1953 about the sale of the assessee company to the Amalgamated Electricity Co. (Belgaum) Ltd. (to be hereinafter referred to as the "Belgaum Co."). It also brought to the notice of the Income-tax Officer, the following documents :

(a) Appropriate extract from the minutes of the meeting of the Boa