Judgement

Appeal (No. 71 of 1939) from a judgment of the High Court (February 3, 1938) on a reference by the Commissioner of Income-tax, Punjab, North-West Frontier and Delhi Provinces, under s. 66, sub-s.2, of the Indian Income-tax Act, 1922.

The question raised by this appeal was whether or not the profit realized by the appellant, the Punjab Co-operative Bank, Ld., Amritsar, on the sale of certain securities was a profit liable to income-tax under the Indian Income-tax Act, 1922.

The facts appear from the judgment of the Judicial Committee, and the questions referred by the Commissioner were (1.) "Whether in the circumstances of the case the amount of Rs.1,42,588 realised by the assessee on the sale of securities and shares over their cost price is taxable; and (2.) " Whether under the circumstances of the case the net interest amounting to Rs.2764 received from vendees of securities on de die in diem basis is taxable."

The High Court (Addison and Din Mohammed JJ.) answered both questions in the affirmative.

On the hearing of the present appeal a preliminary objection was taken by the respondent as to the jurisdiction of His Majesty in Council, by reason of the provisions of s.