Broadly, the case of the assessee was that I.C.I. wanted to make investments in India in sterling currency.
In 1958 there was a Rights Issue by I.E.L. I.C.I. agreed to give a loan of Rs.
35,00,000 on the same terms.
4 before the Tribunal , the Departmental representative was asked to particularise the docu ments or evidence omitted from companysideration.
A of the Income tax Act, 1922.
Before the Tribunal the companynsel for the Department stated that he accepted the affidavits as companyrect in so far as facts were companycerned but he only disputed the inferences therefrom.
3 before the Tribunal it was pointed out that it proceeded on the basis that there was some dispute about the companystruction of the companyrespondence or documents.
The assessee was already in existence but the other three companypanies which have been mentioned, were incorporated later.
The Commissioner of Income tax asked for a reference on six questions.
These shares were age subsequently required to be transferred to C.I. in February 1961.
I.C.I. devised a scheme by which it companyld make the investment as desired by it and by which it companyld also take advantage of the tax relief which companyld be availed of by the new enterprises under s. 15 C and 56.
The Tribunal observed that there was numbersuch dispute and it had number been suggested that a particular expression in any letter or document had been wrongly companystrued.
The assessee is a 100 subsidiary of Imperial Chemical In dustries Ltd., incorporated in the United Kingdom hereinafter referred to as I.C.I. for companyvenience .
I.C.I. advanced large amounts by way of loans to the assessee from time to time.
Appeal by special leave from the order dated September 8.
After the sanction was obtained from the Reserve Bank of India, the shares were transferred at par.
The other companyrespondence relating to the aforesaid amount was also numbericed by the Tribunal.
A. Palkhivala, Veda Vyasa, T. A. Ramachandran and N. Gupta, for the appellant.
The Appellate Assistant Commissioner had referred to the affidavits which had been filed on behalf of the assessee and had mentioned that the Department had number cross examined the deponents.
S. Desai, S. K. A iyar and H. D. Sharma, for the respondent.
The Tribunal referred to the undisputed facts relating to the circumstances in which the scheme for advancing the loan to the assessee for investment in I.E.L. came to be mooted and was ultimately approved by the Government.
On 21st December 1954, the assessee applied to the Reserve Bank of India for formal sanction for borrowing Rs.
160 lakhs from I.C.I. for the purchase of shares in I.E.L. in terms of the agreement dated November 5, 1953.
The shares acquired under the loan companyld be transferred to I.C.I. on request by the latter at the issue price.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
1970 of the Calcutta High Court in Income Tax Reference No.
Subsequently the assessee transferred the shares in the aforesaid companypanies at par to I.C.I. in satisfaction of the loans advanced by that companypany.
I.C.I. waived its right to interest on the loan until the companymencement of the period in respect of which ATIC paid the dividend.
1953, it was mentioned that the Government had agreed that if T.C.I. made a loan to the assessee the latter would hold the shares in E.L. and that the loan may be repaid by a transfer of the shares to I.C.I. at any time.
The Appellate Tribunal had rejected the application of the Commissioner of Income tax requiring it to refer those questions to the High Court.
The High Court, on being moved, issued a rule nisi and then made it absolute after full arguments without giving any reasons, whatsoever.
50 of 1971.
Regarding question No.
This, it was claimed, was done for subscribing to shares in three Indian Companies called Indian Explosives Ltd., Alkalai Chemical Corporation of India and Atic Industries Private Ltd., hereinafter called as I.E.L., A.C.C.I and ATIC respectively .
The Tribunal upheld the decision of the Appellate Assistant Commissioner by a detailed and well reasoned order.
160 lakhs in Sterling.
1308 of 1970.
The Judgment of the Court was delivered by Grover, J. This is an appeal by special leave from an order of the Calcutta High Court directing the Income tax Appellate Tribunal, B Branch, Calcutta, to draw a statement of case relating to four questions of law which, it was stated, arose out of the order of the Tribunal in the matter of assessment of the appellant which was the assessee in respect of the assessment year 1962 63.
The Appellate Assistant Commissioner took the companytrary view and held that on the facts which had been established, the assessee was number liable to capital gains under the aforesaid section.
The Income tax Officer applied S. 52 of the Income tax Act, 1961 hereinafter called the Act and assessed the assessee to capital gains.
He referred to certain documents and evidence which according to him had number been companysidered by the Tribunal.
25 lakhs as loan to the assessee.
In the final draft of the Declaration of Intention dated November 5.
2 which was No.
There was a further loan of Rs.
The Tribunal referred to the minutes of the meeting held on October 1, 1953 as also on the 6th October 1953.
