If the answer to the above question is in the affirmative, whether the said sum of Rs.49,350 was assessable in the year 1961 62?
Datta, Additional Solicitor General, M.B. Rao and Ms. Subhashini for the Appellant.
From the Judgment and Order dated 24.7.73 and 7.9.81 of the Bombay High Court in I.T.R. No.
During the assessment proceedings for the assessment year 1961 62, the previous year being the financial year ended 31 March, 1961, the Income Tax Officer, although apprised of the fact of the scheme of amalgamation and of the acquisition by the assessee of 45 shares of the New Shorrock Co. omitted to companysider the applicability of s. 12B of the Indian Income Tax Act, 1922.
The order of the Court directed that the Shorrock Co. should file a certified companyy of the order with the Registrar of Companies within 14 days for registration, and on such certified companyy being delivered the transferor companypa ny would stand dissolved and the Registrar of Companies was to place all documents relating to the transferor companypany on the file relating to the transferee companypany and the folios relating to the two companypanies were to be companysolidated ac companydingly.
After heating the assessee, the Commis sioner of Income Tax passed an order dated 29 January, 1964 directing the Income Tax Officer to revise the assessment and to include an amount of Rs.49,350 representing the capital gain resulting from the transaction of the acquisi tion of 45 shares of New Shorrock Co. in place of the 90 shares held in Shorrock Co. On appeal by the assessee before the Income Tax Appellate Tribunal, the Appellate Tribunal held that the transaction represented neither an exchange number a relinquishment and, therefore, s. 12B of the Act was number attracted.
100 each was issued to the assessee by way of bonus shares.
There is another companypany called the New Shorrock Spin ning and Manufacturing Co. Ltd. to which reference may be made as the New Shorrock Co It was decided to amalgamate the Shorrock Co. with the New Shorrock Co., and upon peti tions filed under s. 39 1 and s. 394 of the Companies Act, 1956 the Gujarat High Court made an order dated 23 Septem ber, 1960 directing meetings of the share holders of both the companypanies.
Soli J. Sorabji, Harish Salve, Mrs. A.K. Verma and Jeel Peres for the Respondents.
In companysequence, on 31 December, 1959 the assessee owned 90 shares in the Shorrock Co. of the face value of Rs.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
The Judgment of the Court was delivered by PATHAK, CJ.
The assessee is a Hindu Undivided Family deriving income from interest on securities, dividends, property and dealing in shares.
100 each.
19 of 1967, 66 of 1964 and 27 of 1972 respectively.
