Deb, J. - (1.) In this reference under Section 66(2) of the Indian Income-tax Act, 1922, we are concerned with the following questions of law ; "(i) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in investigating the nature of the shares held by the assessee in Chrestian Mica Co. Ltd., when both the assessee and the income-tax authorities had treated them as the stock-in-trade of the assessee as a dealer in shares for every assessment year since 1949-50 and proceeded on the same basis for the instant assessment year? (ii) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the shares held by the assessee in Chrestian Mica Co. Ltd. were not its stock-in-trade for dealing in shares? (iii) If the answer to question No. (ii) be in the negative, then, whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of rupees thirty-two lakhs, twenty-five thousand and five hundred and fifty was not assessable in the hands of the assessee?"
(2.) The assessee is a firm. The assessment year is 1956-57. The previous year ended on December 31, 1955. The assessment was made on a total income of Rs. 36,41,554 including a sum of Rs. 32,25,550 representing the surplus which the firm had received during the relevant previous year from the liquidator of Messrs. Chrestian Mica Company Ltd., which went into liquidation in 1955.
(3.) The said assessment was confirmed on appeal by the Appellate Assistant Commissioner, but the second appeal was allowed by the Tribunal and the assessment order was set aside.;