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You've made a classic networking blunder. Each NIC needs to be on it's own subnet. The ip_forward setting will take care of making packets go where they're supposed to, you don't have to "point" the interfaces at each other.
Reconfigure as such:
eth0 = 172.31.48.2
eth1 = 192.168.48.1
172.31.48.1 0.0.0.0 0.0.0.0
172.31.48.2 172.31.48.0 255.255.255.0
192.168.48.1 192.168.48.0 255.255.255.0
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