T.L.VENKATARAMA AYAR, J.

(1) THE appellant is a limited Company, which had been carrying on business in crushing sugarcane at a place called Pipraich in Gorakhpur District from the year 1932. In 1946 it decided to expand its business, and with that object, sold its old machinery which had a crushing capacity of 160 tons per day, and purchased a new one with 650 tons capacity. The new plant was installed in 1947, and it actually started working in 1948-49. During this period, the sugar industry was passing through a crisis owing to shortage of sugarcane, and in consequence, the government assumed control of its production and supply. The quota which was allotted to the appellants Mill proved too small to its being worked profitably, with the result that in 1948-49 and 1949-50 the Company sustained losses which according to the appellant came to Rs. 2,67,042-7-4. After several unsuccessful attempts at setting a larger supply, the management wrote to the government on 11/05/1950, either to increase their quota or to permit them to sell the Mills. In October, 1950, the government granted permission for the sale of the plant and machinery, and pursuant thereto, the