CHAKRAVARTTI, C.J.

1. THIS is a reference under s. 66 (1) of the Indian IT Act, made by the Calcutta Bench of the Tribunal and involves a fundamental question of some difficulty. Unfortunately, the treatment of the question by the authorities below has been of a somewhat summary character, presumably because it was raised and argued before them in a superficial form. But even if such was the case, there is hardly any justification for the Tribunal failing to realise at least what facts were required to be found and stated. The statement of the case is sketchy and bare and like most of the statements we have had to deal with during this session, has hardly any appearance of a case seriously stated.

2. THE question referred arises in the following way. THE assessee, the Calcutta Co. Ltd., deals in land and property and carries on that business in a form which has but recently made its appearance in this country. It buys land, develops it so as to make it fit for building purposes and sells it at a profit in plots. THE developments undertaken are, in the main, that roads are laid out, a drainage system provided and street lights installed and maintained. THE whole of the develo