Dipak Kumar Sen, J. - (1.) The facts admitted and/or found in this reference under Section 66(1) of the Indian Income-tax Act, 1922, at the instance of the Commissioner of Income-tax, West Bengal-I, are as follows: The assessee is carrying on business as freight and steamship agents. In the assessment year in question, namely, 1955-56 (the corresponding previous year being the calendar year 1954) it was found that the reserves and accumulated profits of the assessee totalled Rs. 7,02,679-13-3. The cost of the fixed and other assets of the company were found to aggregate to Rs. 8,12,492-1-8 and the same consisted of, (a) land and buildings, (b) furniture and fittings, (c) typewriters and duplicators, and (d) motor cars and cycles.
(2.) The assessee in the year concerned was the managing agent of another company named The India Steamship Co. Ltd. and the assessee held 94,000 ordinary shares of Rs. 10 each in the said India Steamship Co. Ltd.
(3.) Actual cost of the said shares came to Rs. 6,91,373-15-0 in the balance-sheet of the assessee as on the 31st December, 1954.;