1. The question that arises for our consideration in this appeal does not seem to have been considered by any Court. Perhaps the reason is--so it seems to us-- that the answer is very obvious. It appears that the petitioner company transferred to a subsidiary company the business of Eros Theatre and Restaurant and the subsidiary company paid Rs. 5,00,000/- for goodwill.

An application was made to the Appellate Tribunal under Section 66(1) of the Income-tax Act with regard to the assessment of the petitioner company, the income-tax authorities having held that in respect of the petitioner companys chargeable accounting period 1943 the Excess Profits Tax Officer was not bound to take into consideration the value of the goodwill in computing the average capital for the purpose of Section 6(1) of the Excess Profits Tax Act.

As the tribunal rejected the application the petitioner company approached the High Court under Section 66(2) and we directed the tribunal to state a case and the question of law on which we asked the tribunal to state a case was whether in the computation of capital employed in the business of the assessee the Tribunal erred in not including the value of the