FACTS : - One Henry Ganon, who used to be assessed as a resident in British India, left India in 1944 and died in the United Kingdom on 13-5-1945, leaving a will dated 18-11-1942. The National Bank of India in England, who were the executors named in the will, were granted probate of the will by a competent Court in the United Kingdom. The executors granted a power-of-attorney to one James Anderson (the assessee) to obtain letters of administration in respect of the estate of the deceased in British India. The assessee applied to the High Court, Bombay, under S.241 of the Indian Succession Act, for letters of administration with the will annexed, and the same were granted to the assessee.

In the course of the winding up of the estate of Henry Ganon in British India, the assessee sold shares and securities belonging to the deceased for the purpose of distributing the assets amongst the legatees. The sales realised more than the cost price and the excess of the sale price over the cost price was treated by the Income-tax officer as a capital gain. For the assessment year 1947-48 the capital gain was computed under S.12B of the Indian Income-tax Act, 1922, at Rs.20,13,738 and