1. In this case the petitioners are joint liquidators of Pursa Ltd., an incorporated company which went into voluntary liquidation on the 20th June, 1945. By an order of assessment dated the 21st June, 1947, the Income-tax Officer, Patna, included in the total income of the petitioners a sum of Rs. 13,05,144 on account of profits on the sale of machinery under section 10(2)(vii) of the Income-tax Act. He also added a further sum of Rs. 15,882 as profits on the sale of stores. The assessment was affirmed on appeal by the Appellate Assistant Commissioner and also by the Income-tax Appellate Tribunal. At the instance of the petitioners the Tribunal stated a case to the High Court on the following two questions:

"1. On the facts and in the circumstances of this case is the surplus of Rs. 13,05,144 arising out of the sale of plant and machinery of the sugar factory chargeable under sec. 10(2) (vii) ?

2. Was the profit of Rs. 15,882 on the sale of stores of the factory taxable under the Income-tax Act in the circumstances of this case?"

2. The first question was answered against the assessee and the second question was answered against the Department by the majority of the judges