Judgment

VENKATACHALIAH, J. :- These appeals, by special leave, by the Commissioner of Wealth-tax, Bhopal, arise out of the opinion rendered by the High Court of Madhya Pradesh, Bhopal, in four consolidated wealth-tax references under S. 27(l) of the Wealth tax Act, 1957. They raise a short but interesting question touching the incidents of what is described as the Quaraza-e-Hasana said to be a transaction known in and peculiar to the personal law of the Muslims.

2. The matters arise out of the proceedings concerning the assessment to wealth-tax of the Respondent, Abdul Hussain Mulla Mohammad Ali (the assessee) for the four assessment-years 1957-58 to 1960-61.

In the original-returns for the assessment year 1957-58 relevant to the valuation date 31-3-1957, the assessee filed a return of net wealth of Rs. 8,57,9 10/- which included a sum .of Rs. 4,00,000/- representing the principal value of the loan advanced by the assessee to a certain Faizullabhai Mandlawala, Sidhpur. Both the assessee and the said Faizullabhai Mandlawala were partners of a firm carrying on business under the name and style Rising Sun Flour & Oil Mills at Ujjain. The borrower had employed this sum as part of his cap