Satyanarayana Rao, J.-

Two questions have been referred to this Court for decision by the Income-tax Appellate Tribunal under section 66(1) of the Act. They are:

(1) Whether on the facts and in the circumstances of the case the inclusion and assessment of the sum of Rs. 9,397, re, resenting the sale proceeds of plots of land, by the Appellate Assistant Commissioner after remand and upheld by the Appellate Tribunal, when this amount had not formed the subject matter of the appeal in respect of assessment year 1944-45 either before the Appellate Assistant Commissioner or the Appellate Tribunal in the first instance, is legal?

(2) Whether on the facts and in the circumstances of the case the assessment of the sum of Rs. 13,197 realized by the sale of vacant plots and fruit shop buildings under the head ‘business’ is lawful?

The assessee is Sri Gajalakshmi Ginning Factory, Limited, Palladam, hereinafter called the “company.” The company purchased in 1932 a ginning factory with extensive lands appurtenant to the factory and also a plot which was somewhat removed from the factory and was in the heart of the town of Tirupur. On this plot there were some fruit stalls. The whole lot was purchas

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