KHAN BAHADUR AHMED ALLADIN & SONS versus COMMISSIONER OF INCOME-TAX, ANDHRA PRADESH

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KHAN BAHADUR AHMED ALLADIN & SONS v. COMMISSIONER OF INCOME-TAX, ANDHRA PRADESH

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November 24, 1967 [J. C. SHAH, V. RAMASWAMI AND V. BHARGAVA, JJ.)

Indian Income-tax Act, 1922, s. 2(4)-Adventure in the nature of trade--What is-Tests to determine-Question is mixed question of la»' ond fact-Tribunaf s duty in preparing statement of case;

The assessee firm purchased a Brengun factory from the Government of India and sold the stores and pan of the lands and buildings shortlv afterwards at a higher price. It admitted before the Income-tax autho rities that the purchase and sale in respect of the stores constituted an adventure in the nature of trade, but in respect of the land and buildings sold it contended that they had been purchased by way of investment, and the sale of a part of them did not result in assessable profit. The claim was rejected by the Income-tax Officer, by the Appellate Commis sioner, and by the Appellate Tribunal. The High Coun in a reference un&,r s. 66( I) also rejected it. The firm appealed to this Court by special leave.

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HELD :

(i) In reaching the conclusion that a transaction is an adventure in the nature of ttade, the Appellate Tribunal has to find the primary evidentiary facts and then apply the legal principle involved in the statutory expression "adventure in the nature of trade",_ used in s. 2(4) of the Indian Income-tax Act. A question of this description is· a mixed question of law and fact and the decision of the Appellate Tribunal thereon is open to challenge under s. 66( I) of the Act. [442 F-GJ

(ii) The question whether the transaction is an adventure in the nature of trade must be decided on a consideration of a11 the relevant facts and circumstances which are proved in the particular case. The answer to the question does not depend 011 the application of any ab stract rule, principle or formula but must depend UPQn the total im pression and effect of all the relevant facts and circumstances established in the panicular case. [442 HJ

(iii) In the present case the appe!lant firm purchased the Brengun factory from borrowed money. The income from the property was onlv about 1/6 of the interest payable by the company on the money borrow· ed. The first sale was effected by the firm within three months of the purchase. and the sums received from sale were utilised for paying off the debts as also the dues to the Government. The firm had not enough financial resources to invest the monev required to purchase the facto!"'.' and the transaction could not therefore be with a view to making a perma· nent investment, but only for making profit. It had not been established by evidence that the appellant firm purchased the Brengun factocy for the purpose of establishing a cycle factory. Having regard to the total effect of an the relevant facts and circumstances established in the case it was rightly held by the High Court that the transaction was an adventure in the nature of trade and pan of a profit making scheme. [448 B-HJ

(iv) The •tatement of case is not intended to be a mere copy of the order sheet in a litigation but it must set out the ooints raised by the aggrieved party, the reply thereto, if any, and the authorities or statutory

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provisions relied upon for t~ view taken by the Appellate Tribunal to .~ether with an intelligible summary of the factS found by the Appellate Tribunal. The Tribunal should clearly state its conclusions and findings ot fact and should not leave it r:o the lfigh Court or this C..ourt to deduce the findings or to collect facts from a large number of documents which :ire part of the record of the case. [449 A-DJ

Vankataswc.n1i l'Vaidu &: Co. v. (."ommissioner of Income-tax. 35 l.T.R. 594, Californian Copper Syndicate v. Harris, 5 T.C. 159, Martin v. I.awry, 11 T.C. 297, Rutledge v. Con1missioners of Inland Revenue, 14 Tax Cases 490, Commissioners of Inland Revenue v. Fraser, tk cssess<e, 24 Tax Cases 498, Leeming v. Jones, 15 Tax Cases 333, Saro; Kumar Mazumdar v. Commissioner Income-tax, West Bt1111al, 37 l.T.R. 242 and Commissioners of Inland Revenue '" Reinhold. 34 Tax Cases 389, refer- red to.

C1v1L APPEi.I.ATE JUR1smcnor; : Civil Appeals Nos. 708 to

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710 of 1%6.

Appeals by special leave from the judgment and order dated July 23, 1964 of the Andhra Pradesh High Court in Case Referred No. 42 of 1962.

Sukumar Mitra, Y. V. Anjaneyulu, Bhuvnesh Kumari, I. B. D

Oadachanji and· 0. C. Mathur, for the appellant appeals).

(in all

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Niren /Je, Solicitor-Genera/, S. K. Aiyar, R. N. Sachthey and

S. P. Nayar, for the respondent (in all the appeals).

The Judgment of the Court was delivered by Ramaswami, J. These appeals are brought by special leave from the judgment of the High Collrt of Andhra Pradesh dated 23rd July, 1964 in referred ca-;e No. 42 of 1962.

The assessment years involved in these appeals arc 1358 F .• 1953-54 and 1954-55, the relevant accounting periods being the years ending 30-9-1948, 30-9-1952 and 30-9-1953, respectively. The assessec firm Khan Bahadur Ahmed Alladin & Sons (herein after refcrr~d to as the 'assessee firm') consists of three partners, Khan Bahadur Ahmed Alladin, and his two sons, Khan Saheb . Dost Mohammed Alladin and Noor Mohammed Alladin. The assessec firn: purchased the Brengun Factory and the properties attached to it consisting of 403 acres of land, 14 factory buildings, about one hundred residential quarters, and railway sidings, fur nitures etc., in addition to the stores, from the Government of India. The price of the Brcngun Factory and the properties together with the furniture etc. was fixed at Rs. 27 lakhs while the price of the stores was fixed at Rs. 8 lakhs. During the relevant accounting years, the assessee finn sold a part of the stores for Rs. 9,53,918 0.S. and 46 acres of land, 14 factory buildings, furniture, railway siding, etc. for Rs. 26,48,215 0.S. It was not disputed that the excess over the price realised for the re-sale of

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AHMED ALLADIN v. C.I.T. (Ramaswami, J.)

441

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stores was Rs. 2,26,484 O.S. and for the r(}-sale of part of the It was ad factory land, building etc. was Rs. 10,46,834 O.S. mitted by the assessee firm before the Appellate Tribunal that the suqllus realised by the re8ale of stores was not a capital accretion but an adventure in the nature of trade. With regard to the factory it was argued that it was an invesunent, and not an adven ture in the nature of trade and as such the excess amount realised represented a realisation of capital asset. The contention of the as;essee firm was rejected by the Appellate Assistant Commissioner and by the Appellate Tribunal in appeal. The view taken by the Appellate Tribunal was that the assessee firm had planned a well calculated scheme of profit making, that it had the intention of exploiting the properties which it had purchased to its advantage, that the transactions in question constitute an adventure in the nature of trade, and any surplus which it got by sale of the portions of the properties was liable to tax. At the instance of the assessee firm, the Appellate Tribu nal stated a case to the High Court on the following question of law:

the Incom(}-tax Officer, by

"Whether the purchase of the site and

l:luildings known as "Brengun. Factory" was in the cours~ of a profit-making scheme or an adventure in the nature. of trade ?"

By its judgment dated 23rd July, 1.964 the High Court answered the question against the assessee firm.

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On behalf of the appellant Mr. Sukumar Mitra argued that the assessee firm along with Abdullah Alladin, brother of Khan Bahadur Ahmed Alladdin had been carrying on business as a partnership firm under the name of Khan Bahadur Ahmed Alladdin and Company (hereinafter referred to Alladdin & Co.). It had substantial interest in various joint stock companies, and was the managing agent of several joint stock companies, and possessed considerable financial resources. The assessee firm acquired the Brengun Factory with the intention of starting a bicycle factory or some other industry as an investment, but not with the intention of resale. The argument was stressed ,that the purchase and sale of land and buildings was not in the line ·of business of the assessee firm. It was stated that the purchase was an isolated transaction and even after the sales, a major portion of the factory remained with the assessee firm. It was contended that the assessee firm .had not developed the land or parcelled it out with the view ·to sell it to purchasers as a residential area, and make a profit. The submission made on behalf of the appellant \V3S that the tran~action of purchase was in the nature of invest· ment and was not an adventure in the nature of trade and the sales represented the realisations of capital asset.

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The provision of law under which assessment was made for the asse,sment year 1358 F. was section 31 (3) of the Hyderabad Jncome Tax Act (hereinafter referred to as the 'Hyderabad Act') which corresponds to s. 23 ( 3) of the Indian Income Tax Act, 1922 (hereinafter referred to as the 'Indian Act'). The assess- . ments for the subsequent years were made under the Indian Act. The chargiag section under the Hyderabad Act is s. 3, which cor responds to s. 4 of the Indian Act. The word "business" is defined in s. 3 (I ) of the Hyderabad Act which is identical with the language of s. 2( 4) of the Indian Act. Section 8 of the Hyderabad Act states : -

"Save as otherwise provided by this Act, the follow ing heads of income, profits and gains shall be charge able to income-tax in the manner hereinafter appearing, namely:-

(iv) Profits and gains of business, profession or

vocation".

It corresponds to s. 6 of the Indian Act.

The question whether profit in a transaction is a capital accre tion or has arisen out of an adventure in the nature of trade is a mixed question of law and fact In Yenlcattuwami Naidu & Co. v. Commissioner of lncome-llU(') it was pointed out by this Court that the expression 'in the nature of trade' in sub-section ( 4) of section 2 of the Indian Act postulates the existence of cenain elements in the adventure which in law would invest it with the character of trade or business : and that a Tribunal while consi dering the question whether a transaction is or is not an adven ture in the nature of trade before arriving at its conclusion on the facts, has to address itself to the legal requirements a'sociated In other words. in reach with the concept of trade and business. ing the conclusion that the transaction is an adventure in the nature of trade, the Appellate Tribunal has to find the primary evidentiary facts and then apply the legal pr;nciplc involved in the statutory expression "adventure in the nature of trade" used by s. 2 (.4) of the Indian Act. A question of this description i' a mixed question of law and fact and the decision of the Appellate Tribunal thereon is open to challenge under s.·66 ( 1 ) of the Indian Act.

The question whether the transaction is an adventure in th~ nature of trade must be decided on a consideration of all the relevant facts and circumstances which arc proved in the particu lar case. The answer to the question does not depend upon the application of any abstract rule, principle or formula but must

(I) 35 l.T.R. 594.

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AHMED ALLADIN v. c.1.T. (Ramaswami, I.)

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depend upon the total impression and l?ffect of all the relevant facts and circumstances established in the particular case. In Californian Copper Syndicate v. Harris( 1 ), Lord Justice 'Clerk observed, ·:.It is quite a well settled principle in dealing with ques tions of assessment of income-tax that where the owner of an ordinary investment chooses to realise it, and obtains a greater price for it than he originally acquired it at, the enhanced price is not profit ........ assessable to income-tax. But it is equally well established that enhanced values obtained from realisation or conversion of securities may be so assessable where what is done is not merely a realisation or change of investment, but an act done in what is truly the carrying on, or carrying out, of a busi- ness ...... What is the line which separates the two classes of cases may be difficult to define, and each case must be considered according ta its facts; the question to be determined being-Is the sum of gain that has been made a mere enhancement of value by realising a security or is it a gain made in the operation of business in carrying out a scheme for profit making ?" But in judging the character of such transactions several factors have been treated as significant in decided cases. For instance, if a transaction is related to the business which is normally carried on by the assessee, though not directly part of it, an intention to launch upon an adventure in the nature of trade may readily be inferred. A similar inference would arise where a commodity is purchased and sub-divided, altered, treated or repaired and sold or is converted into a different commodity and then sold. The magnitude of the transaction of purchase, the nature of the com .modity, the subsequent dealings of the assessee the nature of the organisation employed by the assessee and·the manner of disposal may be such that the transaction may be stamped with the ch~rac­ ter of a trading venture the assessee purchased a large quantity. of aeroplane linen and sold it in different lots, and for the purpose of selling it started an adver tising campaign, rented offices, engaged an advertising manager, a linen expert and a staff of clerks, maintained account books normally used by a trader, and passed receipts and payment in connection with the linen through a separate banking account. It was held that the assessee carried an adventure in the nature of trade and ·so the profit was liable to be taxed. The same view was taken in Rutledge v. Commissioners of Inland Revenue(') in regard to an assessee who purchased very cheaply a vast quantity of toilet paper and within a short time thereaftet sold the whole consignment at a considerable profit. Similarly, in Commissioners of Iniland Revenue v. Fraser, the assessee(') a woodcutter bought for resale, whisky in bond, in three lots. He m 11 Tax Cases 297. (4) 24 Tax Cases 498,

(1) 5 T.C. 159, 165-6. (3) 14 Tax CaS<e_s 490.

In Martin v. Lowry( 2 )

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sold it later on at considerable profit. The assessee had never dealt in whisky before, he bad no special knowledge of the trade, he did not take delivery of the whisky nor did he have it blended and adveniscd. Even so it was held that the transaction was not an adventure in the nature of trade. Lord President Normend observed in the course of the judgment : "It is in general more easy to hold that a single transaction entered into by an individual in the line of his own trade ( altliough not part and parcel of bis ordinary business) is an adventure in the nature of trade than to hold that a transaction ehtered into by an individual outside the line of his own trade or occupation is an adventure in the nature cf trade. But what is a good deal more important is the nature of the transaction with reierence to the commodity dealt in. The individual who enters into a purchase of an article or commodity may have in view the resale of it at a profit, and yet it may be that that is not the only purpose for which he purchased the article or the commodity, nor the only purpos$ to which he In might turn it if favourable. opponunity of sale does not occur. some of the cases the purchase of a picture has been given as an illustration. An amateur may ·purchase a picture with a view to its resale at a profit, and yet he may recognise at the time Of' afterwards that the possession of the picture will give him aesthetic enjoyment if he is unable ultimately, or at his chosen time, to realise it .at a prolit. A man may purchase stocks and shares with a view to selling them at an early date at a profit but, if be does so, he is purchasing something which is itself an investment, a potential source of revenue to him while he holds it. A man may purchase land with a view to realising it at a profit, but it also may yield him an income while he continues to hold it. If he con tinues to hold it, there may be also a cenain pride of posses.~ion. But the purchaser of a large quantity of commodity like whisky, greatly in excess of what could be used by himself, his family and friends a commodity which yields no pride of possession, which cannot be turned to account except by a process of realisa tion, I can scarcely consider to be other than an adventurer in a transaction in the nature of a trade; and I can find no single fact among tho~c stated by the Commissioners which in any way In my opinion, the fact that the transaction traverses that view. was not in the way of business (whatever it was) of the respon dent in no way alters the character which almost necessarily belong' :o a transaction like this".

These arc cases of commercial commodities but a transaction of purchase of land cannot be assumed without more to be an adventure in the nature of trade. In Leeming v. Jones(') syn dicate was formed to acquire an option over a rubber estate with a vie~ to resell it at a profit, and finding the estate too small the

(I) IS Tax Cases 333.

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AHMED ALLADIN V. C,.!.T. (Ramaswami, J.)

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two estates on syndicate acquired another estate and sold the It was held that the transaction was not in the nature of profit. trade and the profit was not liable to be assessed to tax. The same view was expressed in Saroj Kumar Mazumdar v. Commis sioner of Income-tax West Bengal('), in which the assessee who carried on business of engineering works purchased land w.hich was under requisition by the Government, negotiated a sale before land was the land was de-requbitioned and sold it after released. Again in Commissioners of TnlanJ Revenue v. Rein hold(") the ·respondent who. carried on business of wharehouse men bought four houses in January, 1945, and sold them at a profit in December, 1947. He admitted that he had bought the property with a view to resale and had instructed his agents to sell whenever a suitable opportunity arose. On behalf of the Crown it was contended that the purchase and sale constituted an adventure in the nature of trade and the profits arising there It was held by the Court of from were chargeable to income tax. Se;sions that the initipl intention of the respondent to purchase the property w11h a view to resell did not pd se establish that the transaction was an adventure in the nature of trad.e and the Com missioners were· Justified in treating the profit as not assessable to income tax. But the circumstance of a particular case may lead to the conclusion that the purchase or resale of land is in the In Vcnkataswami Naidu's(') case the appellant nature of trade. firm which acted as managing agents purchased, total four contiguous plots of land consideration of Rs. 8, 713 adjacent to the place where the mills of the company managed by it were situated. The first. purchase was made in October. 194 l and the second and subsequent purchases were made in November, 1941, June. 1942 and November. 1942. As Ion~ as the appellant was in possession of the land it made no effo1~t to cultivate it or erect any superstructure on it but allowed the land to remain unutilised except for the rent received from the house which existed on one of the plots. The appellant sold the land to th'e company managed by it in two lots in September and November, 194 7. for a total consideration of Rs. '52.600. The· question was whether the sum of Rs. 43,887 being the excess realised by the appellant by the two sales over its purchase price was assessable to income tax. _ The Appellate Tribunal rejected the coniention of the appellant that the properties were bought as :in investment and that the plots were acquired for building tenements for· the labourers of the mills but came to tne conclu ~ion .that the transaction was an adventure in the nature of trade. On a reference, the High Court expressed the same vie.w. It was held by this Court in appeal that the Appellate Tribunal was ri~_t_in inferring that __t_~e appellant l'ttew that it would be able

for a

(l) 37 Tax Cases 242

ISup.C.I '68 -·14

(3) 35 1.T.R. 594.

(2) 34 Tax Cases 389.

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to sell the lands to the managed company whenever it thought it profitable so to do, that the appellant purchased the four plots of land with the sole intention of selling them to the mills at a profit and that the High Court was right in holding that the tran saction was an adventure in the nature of trade.

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As we have already said it is not possible to evolve any legal test or formula which c_an be applied in determining whether a transaction is an adventure in the nature of trade or not. The answer to the question must necessarily depend in each case on the total impression and effect of all the relevant factors and cir cumstances proved therein and which determine the character of the transaction. What then arc the material facts found in the present case ?

Alladin & Co. was the managing agent of several joint stock CO!llpanies dz., Hyderabad Asbestos Cement Products Limited (hereinafter referred to as the Asbc-stos Co.). Hyderabad Lan1i nated Products Limited (hereinafter referred to as the Laminated Products), Hyderabad Allwyn Metal Works Limitw (hereinafter referred to as the Allwyn Co.) and others. Alladdin & Co. started Asbest(ls Co. in 1946 and the Laminated Products in 1947. The Government of Hyderabad had 50% share holding in both these companie~. Negotiations for the purchase of Brengun Factory situate in the out-skirts of Hyderabad commenced in December, I 946. On I Sth December, 1946, there took place a meeting between Khan Sahcb Dost Mohammed Alladin and Noor Mohammed Alladin on behalf of Alladin & Co. and Khan Bahadur Obaidullah, the then Additional Financial Adviser to the Gov ernment of India. The latter informed the two Alladin brothers that the Government of India had decided to sell the Brengun Fac tory as the war had ended and it was going cheap. It was agreed that the price of the factory building should be fixed at Rs. 27 lakhs. and of the stores at Rs. 9 lakhs. Alladdin & Co. asked for six months' time for making the payment hut finally it was agreed that the price should be paid in four equal monthly instalments commencing from 1st January, 1947. The contract of sale was made subject to the condition that the Hyderabad Government was no longer interested in the factory and also ;,ubject to the its letter dated confim1ation by the Board of Directors. By December '.'.4. 1946, Alladdin & Co. accepted the proposal and informed the Additional Financial Adviser that the Board had agreed to purchase the Brengun Factory and the first payment would he made on !st or 2nd January. 1947. Not having ready cash to pay the first instalment the firm borrowed the sum from the State Bank and the Central Bank pledging the shares of the partners valued at about Rs. 20 lakhs for Rs. 9 lal.hs. It is signi ficant that the assessee firm invested very little of its own money in the purchase of the factory and the stores. Jt got six months

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AHMED ALLADIN v. C.!.T. (Ramaswami, I.)

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time from the Government of India to pay the price in instalments. and paid it by pledging its shares with the Banks, by obtaining further loan from the Banks on over drafts, and by selling por tions of the factory to the Asbestos Co. and Laminated Products, and the Allwyn Co. The balance sheet of the as~essee 1ln11 as on 31-9-1948 disclosed that the assessee firm owed about Rs. 7 lakhs to Government of India, though by that time it had sold properties valued over Rs .. 30 lakhs. It is a significant circum stance that on 23rd December, 1946 a meeting of the Board of Directors of the Asbestos Co. was held and in that meeting a resolution was passed that the Government should be approac.hed in the matter of the valuation of the site and building in the estab lish1nent of the "Asbestos Works" in the premises of the Brengun Factory purchased by the assessee firm and that the managing agents be authorised to address Nawab Medhi Nawaz Jung Baha ';['he notice convening the meeting was issued dur in that behalf. on the 23rd December, 1946, on which date the asscssee firm had not even intimated their acceptance of offer made by the Govern ment of India for the sale of Brengun Factory. Pursuant to the resolution of 28th Decemper, 1946, the Asbesfos Co. resolved to purchase 14 acres of land, buildings de. for Rs. 5 lakhs. It should be noticed that the valuation by the P.W.D. which was considered necessary on the 28th December, 1946 was given up and the price of Rs. 5 lakhs was accepted by the Board of Directors. In the circumstances, the inference that that resolution was passed at the instance of the assessee firm is not unreasonable. Pursuant to the resolution a sale-deed appears to have been ex~cuted in favour It is apparent of the Asbestos Company on 31st March, 1947. that the interval of time between the purchase of the factory and the sale was about 3 months, and this is hardly consistent with the contention of the assessee firm, that it had purchased the property M an investment. It is also admitted that the sale-deed in favour of the Asbestos Co. as well as the Laminated Products and Allwyn Co. were executed by the Government of India in their favour direct. The sale was in favour of the Laminated Products pur suant to a resolution passed on 17th September, 1947. On that day the company resolved that in view of the special facilities for power, water and railway siding at the Alladin Industrial Estate. Sanathnagar, sanction should be accorded for the acquisition of the proposed area of 8 acres of land for the location of the. company's factory as per the rate offered to the company i.e .. at O.S. Rs. 5,000 per acre and a sum of Rs. 40,000 was agreed to be paid towards the price. A sale-deed was executed pursuant to the resolution in June, 1948. The next transaction relates to the purchase by the A!lwyn Co. The Board of Directors at its meeting on October 29, 1947, resolved to sell away their existing factory buildings at Azam abad to the Nizam's State Railway, and purchase the new factory,

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land and buildin~ as Sanathnagar, for Rs. 25 bkhs. The pro· pcrty purcha,.cd consisted of 24 acres of land, factory building; and furniture, and the sale deed was executed on February 11, 1948. lt is manifest that within one year of the purchase of !he Brcngun Factory, the assesscc firm realised Rs. J 3,99,753 by the sale of 'tores and Rs. 33,90,908 by the sale of 46 acres of land and buildings, in all making a profit of R>. I J ,90.661. It appears from the balance sheet as on September 30, 1948 that c1·en after the extended date, it still owed Rs. 7 lakhs to the GO\·· ernmcnt though by that time it had sold over Rs. 30 lakhs worth of property. The assessce firm was thus paying off the dues w the Government and also discharging its debts by selling frac tions of the property. In other words, the assessee firm was pur chasing, sening and liquidating the loans, which would all show the co1ni>1ercial nature of the transaction. These facts establish that the assessee tirin had not enough financial resources to invest Rs. :ib lakhs on the Bren Gun Factory and that the transaction was launched upon with a view to make profit and not as a per manent investment. There is another aspect of the matter to be taken into account. The property income from Bren Gun Fae· tory during the year 1953-54 as would appear from the Assess· ment Orders of the years. 1953-54. 1954-55 was about Rs. 22,00(1 1.Q. The interest on loans on over-drafts is paid to be 4t per cent. on 27 lakhs the balance of price payable to the Government. the annual imcrest would be about Rs. 1,21,500. rt is manifest that the assc,sec ltrm could not have borrowed the money to purcha>.: the property as an investment when the income was about 1/6 of the imcre>t payable on the amount borrowed. Mr. St•l:.,~nar Mitra suggc,tcd that the assessec firm intended to develop the Bren Gun Factory as an Industrial Estate and referred w certain correspondence in this connection. But the correspondence ·doc' not cstahlish that any of the foreigri companies agreed to start a cydc factory of their own or in collaboration with the assessce fimi. The correspondence between the parties admitledly ended in February 1946. Mr. Sukumar Mitra also referred to the cor re:;p<mdcncc between January 8. 1947 to March 10. 19.t7 hut this ~l!-ln c..Jo~·~ not show that there was any prospl.'.:ct of the assesscc firm starting a cycle industry or any other industry either solcl\ or in collaboration with a foreign company.

Having regard to total effect of all th~ relevant facts and cir· cmmtances established in this case we are of the opinion that the High Court was right in its conclusion that the purchnsc of the site and the buildings of the Bren Gun Factory was an adventure ir the nature of trade and was in the course of a profit making scheme and the question was rightly answered hy the High Court against the assesscc firm.

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We consider it necessary to add that the statement of the case made by the Appellate Tribunal is unsatisfactory and gives no information whatever about the arguments rc,pectively advanced by the parties or the findings recorded by the AppeJlate Tribunal. The statement of the case is not intended to be mere copy of the order sheet in a litigation but it must set out the points raised by the aggrieved party, the reply thereto, if any and the authorities or statutory provisions relied upon for the view taken by the Appel late Tribunal together with an intelligibie summary of the facts found by the Appellate Tribunal. A statement of the case should fully, clearly and precisely set out all the relevant facts, or if the facts have been fully set out in the judgment of the Tribunal they may be incorporated in. the statement of the case by a reference to partkular paragraphs of the judgment in which the facts are so In any event, it is important that the Appellate Tribunal' set out. should state clearly its conclusions and findings of fact and should not leave it to the High Court or this Court to <le<luc;: the findings or. to collect the facts from a large number of documents which are part of the rl!cord of the case. A statement of the case which does .not set out precisely the findings of the Appellate Tribunal on the questions of Jaw and fact serves no useful purpose. It merely gives an opportunity to the parti!!s to put forward argu menl' ~t the stage of reference which are often untenable.

I'or the re:;sons afready expressed we hold that these appeals

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must be dismissed with costs. There will be one hearing fee.

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Appeals dis,mis.•ed.

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