Between September 19 to November 14, 1952, the shareholding of Kumars was transferred to five persons who may be called Ghoshes, and as a part of that scheme for transfer of the shares, investments of the companypany of the value of Rs.
61 per share.
76,241 in the transactions of purchase and sale of shares.
The Tribunal in second appeal held on review of the evidence that the companypany had failed to substantiate their claim that any sale of the shares of the trust had at all been effected.
The Income tax Officer disallowed the claim and the order was companyfirmed by the Appellate Assistant Commissioner.
In the view of the Income tax Officer there was overwhelming proof that the companypany had neither purchased number sold the shares of the trust.
In proceedings for assessment for the assessment year 1953 54 the companypany claimed that it suffered a total loss of Rs.
In appeal, the Income tax Appellate Tribunal held that the transaction of purchase and sale of the shares of the trust was number a part of the companypanys business and on that account must be regard as a loss in the nature of capital and cannot be set off against the companypanys profits.
During the pendency of proceeding for assessment of income, the Income tax Officer, Companies District IV, Calcutta, initiated proceedings under section 28 1 c of the Indian Income tax Act, 1922, and passed an order on September 29, 1955, imposing upon the companypany a penalty of Rs.
The Tribunal at the same time observed that they did number propose to express any opinion on the genuineness or otherwise of the transaction relating to the purchase and sale of the shares of the Trust.
1,01,000 odd were transferred to Kumars and the companypany purchased 400 shares of Messrs. East India Housing and Land Development Trust Ltd., hereinafter called the Trust, held by two out of the five Ghoshes at the rate of Rs.
The Appellate Assistant Commissioner in appeal companyfirmed the order imposing penalty.
The companypany sold the shares of the trust to Messrs. Chandoo Lall, a registered sharebroker, at the rate of Rs.
60 per share, and the latter in their turn sold the shares to Bijan Mohan Kundu at the rate of Rs.
Shah, J. Messrs. T. D. Kumar Bros. Private Ltd., hereinafter called the companypany, was incorporated in 1923 under the Indian Companies Act, 1913.
42,000.
257 4 0 per share.
The paid up capital of the companypany was Rs.
The entire share capital was held by three persons who may be called Kumars.
1,02,000 representing 1,020 shares of Rs.
100 each.
