(1) STATEMENT OF THE CASE

AS directed by their Lordships of the Hon;ble Calcutta High court we hereby draw up the following agreed statement of the case and refer it to High court at Calcutta under S. 66(2) of the Indian Income Tax Act 1922.

(2) THE assessment year concerned is 1951-52, for which the relevant amounting year is the financial year 1950-51.

(3) THERE was a joint venture run by one Messrs. Bhagwan Raja Patel & Co. and Messrs. Premier Suppliers Ltd., for purchase and sale of machinery from the disposal department of Assam, and each was having half share in the joint venture. On the 22/10/1949, Messrs. Premier Suppliers Ltd. sold their interest in the venture to the assessee-company and Messrs. Bhagwan Raja Patel sold their interest to Patel Engineering Company, so that the persons now interested in the venture were the assessee-company and Messrs. Patel Engineering Co. Ltd. The stock of the disposal machinery remaining unsold were thereafter divided between the assessee and Patel Engineering Co. Ltd. The assessee received machinery valued at Rs. 2,06,372.00 as its share, in the Assessees account books for 1949-50 the value was written up by Rs. 4,0