The following questions stand referred by the Tribunal under the Indian Income-tax Act:

(1) Whether the said garden formed the stock-in-trade of the money-lending business ; and

(2) Whether the excess realised on the sale of the same was properly brought to tax ?

The assessee had been assessed to tax as a Hindu undivided family for the year of assessment 1956-57 relevant to the accounting year ended on 31st March, 1956. The family carried on money-lending business in Kurunegale in Ceylon under the vilasam SP. AV. AN. A certain estate in Ceylon was purchased by the assessee family on 27th December, 1929, from one Gnanapandian Chettiar for a sum of Rs. 15,000. The said amount was paid in India and the transaction is disclosed in the account books of the family maintained at “Oor”. Nattukkottai Chettiars who carry on business in foreign parts always maintain an account, at the place of their residence, called the “Oorkadai” account. As the property was in Ceylon, the

income from the property was naturally utilised in the money-lending business of Kurunegale. On 3rd November, 1947, entries were made both in the Oorkadai account and in the money-lending account at Kurunegale