MODI, J.—This is a reference by a Division Bench in what was a reference to that Bench under sec. 66-A of the Income-tax Act, 1922.

2. The material facts leading up to this reference may be shortly stated as follows : —

The assessee is a firm called Ramlal Kachhawa and Sons, Barmer, otherwise also known as Ramlal and Sons. It was assessed for income-tax for the year 1952-53, the corresponding accounting year having ended on 31st of March, 1952. The question before us arises out of the firms new business of mica mining in Mandol in Udaipur Division. The State Government invited tender for fresh leases of a certain area of mica-bearing tract in Udaipur and Bhilwara Districts as per notice No. 9453, dated 29th March, 1958 (Annexure A) in accordance with the Mineral Concession Rules, 1949, subject to certain modifications mentioned therein. Prospective applicants were advised that the mines, quarries and prospecting pits had acquired a value which can be determined by the principles of Mine Valuation and that the intending applicants should visit the area and assign their own value and tender for the same under a sealed cover. It was also mentioned therein that the amount so offered will

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