JUDGMENT

PATHAK, J.:— This appeal is directed against the judgment of the Allahabad High Court answering the following questions in the negative :

"1. Whether on the facts and in the circumstances of the case, the Tribunal was justified in holding that the provisions of S. 10(2)(vii) of the Income-tax Act, 1922 were not attracted?

2. Whether on the facts and in the circumstances of the case, the Tribunal was justified in holding that the sale had taken place before 1-4-1956 and, therefore, the provisions of section 12B of the Income-tax Act 1922 were not attracted?"

2. The assessee, a public limited company, was put into liquidation under the orders of the Allahabad High Court. An amount of Rs. 8,58,893/5/6 was payable by the assessee to the State of Uttar Pradesh on account of arrears of cane-cess. In proceedings for recovery of that amount as arrears of land revenue, the Collector of Deoria attached the assessees mills and put them to auction sale on November 10, 1955. The land, building, machinery and parking grounds were sold for Rs. 24,00,000/- while the moveable properties including mill stores, spare parts, tools and equipment were sold for Rs. 1,80,000/-. All the properties we