The assessee accepted the said offer and received 55,100 shares of the second companypany in exchange of the aforesaid holding of 14,500 shares in the first companypany.
10.12 per share.
1,45,000/ the companyt price at the end of the assessment year 1962 63 and were included in the closing stock.
The face value of the shares of the second Company was Rs.
1 as it did number arise from the judgment of the Income Tax Appellate Tribunal hereinafter referred to as the Tribunal and question No.
It was holding 14500 shares of Asiatic Oxygen Acetylene Company Limited hereinafter referred to as the first Company , of the face value of Rs.
The matter relates to the assessment year 1963 64 for the relevant previous year ended on July 31, 1962.
279 of 1973 made at the instance of the assessee which was disposed of by the Calcutta High Court by the impugned judgment dated August 25, 1978.
The said question was in these terms Whether the Tribunal was right in holding that on the facts and circumstances of the case the exchange of one security for another companyld be described as realisation of the security resulting in profit?
Out of the two questions referred to it for its opinion, the High Court declined to answer question No.
He found that the market quotation of the shares of the second Company, as on 11th August, 1962, i.e., only 11 days after the close of the relevant previous year, was Rs.
1,45,000/ being the companyt price of the shares of the first Company.
10/ per share.
10/ per share and held that Rs.
The assessee is a companypany dealing in shares.
The Income Tax Officer did number accept the companytention of the assessee that it had number earned any profit in the transaction.
This appeal by the assessee arises out of Income Tax Reference No.
5,51,000/ was the value of the shares of the second Company.
The said shares were valued by the assessee at Rs.
10/ each as its stock in trade.
2 was answered against the assessee and in favour of the Revenue.
The assessee, however, valued the shares of the second Company also at Rs.
He valued the shares of the second companypany of Rs.
In the assessment year under reference a new companypany, Asiatic Oxygen Ltd. hereinafter referred to as the second Company had made an offer to obtain shares of the first Company in exchange for the allotment of its own shares at the rate of 38 equity shares in the second companypany for 10 equity shares in the first companypany.
