RAJAGOPALAN, J.

The question referred to this Court under section 66(2) of the Income-tax Act arises out of the assessment for the year 1944-45, the previous year in relation to which ended on 16th August, 1943. The assessee firm carried on business in coffee among other things. In the relevant accounting year, 1942-43, the assessee entered into contracts with the India Coffee Board, constituted under the Coffee Market Expansion Act VII of 1942, under which the assessee purchased 12, 390 cwt. of coffee, with a contractual obligation to export the whole of that quantity to the Middle East and Australia. In addition, the assessee purchased from others out of their export quotas, 2, 303 cwt. which also he was under an obligation to export. The prices at which the India Coffee Board sold the coffee for export were far less than those at which coffee was sold from the pool by the Board for sales within India. The assessee exported only 8, 784 cwt.; the balance of 5, 959 cwt. it sold within India without the knowledge of the India Coffee Board. The assessee made considerable profits out of these sales. The India Coffee Board came to know of these sales in contravention of the