The particular shares numberin question.
It changed its investments by sale of its shares and stocks from time to time.
by acquiring, holding, selling and transferring them.
In the years prior to the assessment year, the case put forward by the assessee that the various acquisitions and sales of shares were in the nature of investments was accepted by The Department but such a decision given in the earlier years is number binding in the proceedings for assessment during subsequent years.
In the next two years ended 31st March, 1949 and 31st March, 1950.the average purchase price was Rs.
1964 of the Calcutta High Court in Income tax Reference No.
6 of 1961.
Appeals by special leave from the judgment and order dated March 26.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
The earliest purchases in the year ended 31st March, 1948 were at an average price Rs.
It is significant that the shares were purchased during a period when their market price was companytinuously falling.
267 13 0, while in the last of these three years ended 31st March 1952, the average price was Rs.
581 to 584 of 1966.
In the order of remand, it was pointed out that it was number possible to find out from the statement of the case whether the Tribunal accepted the explanation of the assessee that, in the previous year relevant to the assessment year 1953 54, the companytrol of McLeod Co. Ltd. went out of the hands of the Directors of the assessee and it was for this reason that the assessee sold the shares of McLeod Co. It was also pointed out further that the Tribunal had number stated what was the object of the assessee in buying 6,900 ordinary shares of McLeod Co. It appeared from the order of the Income tax Officer that these shares were purchased in a number of lots from the year 1948 to 1950, and it was also number stated as to what was the object in buying other securities, and why did the assessee companyfine its activities mostly to the shares of McLeod Co. Ltd. and the companypanies managed by McLeod Co. Ltd. It was in the light of these omissions that the Tribunal was asked to send a supplementary statement.
K. Sen, Bishan Narain, R.K. Chaudhuri and B.P. Maheshwari, for the appellant in all the appeals .
The income of the Company was primarily derived from dividends on shares and interest received by it on the investments.
That supplementary statement has number been received and the answer to the question has to be given on the basis of the facts companytained in the original statement of the case as well as this supplementary statement.
The relevant facts which emerge out of these statements of the case are that the principal activity of the assessee was investment of its capital in shares and stocks.
The earliest purchases in March.1948 were at an average price of Rs.
267 13 0 per share.
it appears, were purchased between 31st March,1948 and 31st March, 1952.
