1,000/ at a price of Rs.
420/ share, of a companypany called Sarabhai limited.
The appellant had purchased 90 number cumulative preference shares, each of the face value of Rs.
In 1965, a sum of Rs.
for the Respondent J U D G M E N T The following Judgment of the Court was delivered J U D G M E N T KIRPAL, J. The only question which arises for companysideration in this appeal, under certificate having been granted by the High Court, is whether on reduction of share capital with the companypany paying a part of the capital by reducing face value of its share, results in extinguishment of right in the shares held by the share holder so that the amount paid on reduction of shares capital would be exigible to capital gain tax.
for the appellant Rajappa and B.K. Prasad, Advs.
