On 14th March, 1957, the assessee sold 800 shares held by it in East India Corporation Ltd. and 1,000 shares held by it in Madura Insurance Company Ltd. to Pachnayaki Private Ltd., Coimbatore, for a sum of Rs.60,000 and Rs.75,000 respectively.
The Income tax Officer thereafter reopened the assessment under section 34 1 b with a view to assess the capital gain arising on the sale of the shares.
It was ascertained from the order of the Tribunal that the break up value on the date of sale of the 800 shares in East India Corporation Ltd. was Rs.1,72,800 and the 1000 shares in the Madura Insurance Company Ltd. was Rs.1,54,000.
1532 35 NT of 1974.
From the Judgment and Order dated 7th March, 1972 of the Madras High Court in Tax Cases Nos.
The paid up capital of the assessee company companysisted of 50 shares of the face value of Rs.1,000 each, fully paid up and the shareholders during the material time were Padmanabha Private Ltd. holding 25 shares and Pudukottah Corporation Private Ltd. holding the remaining 25 shares.
79, 83, 98 and 99 of 1966.
C. Manchanda, Ms. A. Subhashini and K.C. Dua for the Appellant.
The assessee in that case was Rukmani Co. Private Ltd. It was a private limited companypany incorporated in the former Pudukottai State and at the time the High Court dealt with the matter, was a companypany under the Companies Act, 1956.
The companyt price of the 800 East India Corporation Ltd. shares was Rs.81,201 and that of 1,000 Madura Insurance Company Ltd. was Rs.1,00,000.
Nemo for the Respondent.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
An identical question of law had been referred in respect of four separate tax cases to the High Court under section 66 1 of the Indian Income tax Act, 1922 hereinafter referred to as 1922 Act at the instance of the assessee.
On the same day the assessee had sold its 499 shares in Pudukottah Company Private Ltd. to Padmanabha Company Private Ltd. for the companyt price of Rs.
4,990.
The Judgment of the Court was delivered by NUKHARJI, J. These appeals are by certificates granted by the High Court of Madras under article 133 1 of the Constitution.
83/66 first.
The High Court disposed of these appeals by one companymon judgment.
The shares in east India Corporation Ltd., Madura Insurance Company Ltd. and Pudukottah Company Private Ltd. were number quoted in stock market.
