The two questions that were referred to this court were :

1. Whether there are materials for the Tribunal to come to the conclusion that the sum of Rs.3,00,000 received by Captain T.P.M. Alexander by the sale of Cottangady estate in excess of its purchase price was a revenue receipt.

2. Whether in the circumstances of the case for the proper ascertainment of the profits and gains in respect of raising and selling coffee, tea and other produce of the estate, the Tribunal was right in up-holding the decision of the Appellate Assistant Commissioner in taking into consideration the value of the produce which remained on hand unsold at the end of the year of account.

The accounting year was 1-4-1942 to 31-3-1943, and the year of assessment was 1943-44.

2. It is better to deal with each question separately, as the sets of facts necessary for answering each question are different.

3. The facts necessary for considering the points raised by the first question are as follows. Though the assessee, Captain T.P.M. Alexander, died in July 1946 - the proceedings have been continued by his widow - it should be easier to refer to him as the assessee in the rest of this judgment. The assessee w