SABYASACHI MUKHARJI, J.

( 1 ) THE assessee-company held 42,200 shares of the Chemical Manufacturing Co. of India Ltd. The shares had been purchased by the assessee for a total sum of Rs. 2,56,936. By a special resolution passed by the shareholders in an extraordinary general meeting on the 8th September, 1951, the said company, namely, the Chemical Manufacturing Co. of India Ltd. , went into voluntary liquidation and a liquidator was appointed for the winding-tip of the company. By 11th July, 1955, the liquidators had paid to the assessee a sum of Rs. 2,80,400 as dividends. This reference arises out of the assessment for the assessment year 1957-58, the previous year being the period from April 1, 1956, to March 31, 1957. On the 26th September, 1956, during the course of the previous year relevant for the present assessment, the assessee received a further sum of Rs. 21,100 from the liquidators as refund of capital at the rate of 50 np. per share on 42,200 shares mentioned hereinbefore. The question is whether the said sum received by the assessee on the 26th September, 1956, is assessable as capital gains under Section 12b (1) of the Indian Income-tax Act, 1922.

( 2 ) SECTION 12

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