Judgment

SHELAT, J.:- These two appeals, under special leave, arise from two References to the High Court of Patna under Section 66 (2) of the Income-tax Act, 1922 and relate to the assessment years 1945-46 and 1946-47. In the first appeal, the question arising for determination is whether, on the facts and circumstances of the case, the surplus receipt of Rs. 13,43,469/-. realised as a result of the sale of gold is assessable as income, or profits or gains for the assessment year 1945-46 under Section 4 (3) (vii) of the Act. In the second appeal, two questions arise for determination; one relates to the surplus receipt of Rs. 33,481/- arising out of the sale of some more gold, and the second relates to the receipt of Rs. 88,522/- realised by the assessee as a result of sale of certain shares. All the three questions raise the common problem whether the said transactions in gold and shares were by way of realisation of investment or were adventures in the nature of trade or business.

2. The assessee was at all material times a landholder deriving large income from agriculture, royalties of minerals and income from forests forming part of his estate. Prior to l937 when he was a minor,