C.J. Shaila Behari Lal Singha hereinafter called 'the assessee ' is a shareholder of a company styled the Ukhara Estates Zamindaries Ltd. The following table sets out the amounts of dividend received by the assessee from the Company and the years in respect of which they were received : Year of Year of declaration Amount of assessment of dividend dividend 1951 52 1357 B.S. Rs. 37,125/ 1952 53 1358 B.S. Rs. 29,250/ 1953 54 1359 B.S. Rs. 28,125/ The assessee claimed that out of the amounts set out in the table only Rs. 8,669/ for the year 1357 B.S., Rs. 20,469/ for the year 1358 B.S., and Rs. 21,822/ for the year 1359 B.S. were taxable as dividend, and the remaining amounts were not taxable, since they were declared out of capital gains of the Company which comprised salami or premia received by it as consideration for grant of long term mining and other leases and as compensation for compulsory acquisition of lands for public purposes.