Judgment

JASWANT SINGH, J. :- These appeals by special leave are directed against the judgment dated February 9, 1971 of the Calcutta High Court whereby the following question referred to it under Sec. 66 (1) of the Indian Income-tax Act, 1922 (hereinafter referred to as the Act) was answered in the affirmative i.e. in favour of the Revenue and against the appellant :-

"Whether on the facts and in the circumstances of the case, the assessee is a company whose business consists wholly or mainly in the dealing in or holding of investments?"

2. The facts material for our present purpose are : The assessee appellant is a private limited company incorporated under the Indian Companies Act, 1913, its shares being held by the members of Nawn family. For the assessment years 1955-56, 1956-57, 1957-58 and 1959-60 corresponding to the financial years ending on March 31, 1955 March 31, 1956, March 31, 1957 and March 31, 1959 respectively, the Income-tax Officer being of the view that since the rents accruing to the appellant from lands and house properties held by it formed a major part of its income, it was a company whose business consisted mainly in holding of investments as envisaged by sub-