The questions were : "(1) Whether on the facts and circumstances of the case, the assessee firm is entitled to the benefit contained under section 2 5 ( 3 ) in respect of capital gains assessed to tax under section 12B of the Income tax Act ? (2) Whether on the facts and in the circumstances of the case, the assessee firm is liable to pay capital gains in respect of profits and gains arising from the sale of its assets to the limited companies ? (3) Whether section 12B of the Indian Income tax Act, 1922, at all applied to the applicant 's case ? (4) Whether on the facts and in the circumstances of the case, the Tribunal misdirected itself in law and or acted without evidence or in disregard of the most material evidence on record in making the valuation of the applicant 's assets on first day of January one thousand nine hundred and thirtynine ?" The High Court answered the first question in the negative, and the second, the third and the fourth questions in the affirmative.