Judgment

GROVER, J.: This is an appeal by certificate from the judgment of the Calcutta High Court.

2. The assessee who is the appellant was at all material times a share-holder of a number of companies engaged in the business of managing Hotels. He had also been a Director and Managing Director of various companies. Gradually he came to own a large block of shares of Spence s Hotel Limited and also became its Managing Director. He was Incharge of the Management thereof at the material time. He further purchased interest in Associated Hotels of India Limited and Hotels (1938) in association with M. S. Oberoi. In 1944, M. S. Oberoi purchased from the assessee his share holding in the Associated Hotels of India Limited for an amount of Rs. 20,657,05/13/0. Similarly in or about 1949, the holding in Hotels (1938) Limited was purchased by the said M. S. Oberoi. It was maintained by the assessee that he had filed returns of his income in respect of the relevant assessment years and that during the assessment for the year 1945-46, the assessee had disclosed to the Income-tax Officer, District II (2) Calcutta that he had received the aforesaid amount for the sale of the shares of the Associa