19,36.000/and this amount was credited to the account of the two directors of the Free Press Company in the assessees books.
who by their judgment answered the two questions in the negative and against the department.
On October 31, 1946, the Free Press Company resolved at a General Body Meeting to wind up the companypany voluntarily.
The assessee companypany accordingly started publishing newspapers from September 1, 1946.
letting out its machinery and assets and authorizing the assessee company to companylect the book debts and pay off the liabilities of the Free Press Company.
The present appeal is preferred against the said judgment of the High Court.
During the accounting year 1946 47 the Free Press Company did number do the business of printing and publishing newspapers from September 1, 1946, and thereafter the assessee company alone was carrying on the said business.
Appeal from the judgment dated March 1, 1960 of the Madras High Court in Case Referred No.
The Free Press Company went into voluntary liquidation on October 31, 1946, and the liquidator, on November 1, 1946, companyfirmed the transfer of the assets made by the Free Press Company to the assessee company.
The argument in the appeal proceeded on the basis of the following facts.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
11 of 1955.
Ganapathy Iyer and R. Gopalakrishnan, for the respondent.
N. Rajagopal Sastri and R. N. Sachthey, for the appellant.
The Free Press of India Madras Ltd., hereinafter called the Free Press Company, was a private limited companypany carrying on business as printers and publishers of certain newspapers, namely, Indian Express, Dhinamani and Andhra Prabha at Madras, Eastern Express and Bharat at Calcutta and Sunday Standard and Morning Standard at Bombay. ,
596 of 1963.
On August 31, 1946, the Free Press Company passed a resolution transferring to the Express Newspapers Limited, a new companypany formed on or about April 22, 1946, hereinafter called the assessee company, the right to print and publish the said newspapers from September 1.
The facts leading up to the reference and relevant to the present enquiry are as follows.
The liquidator appointed thereunder was directed number to carry on the business of the companypany.
May 7, 1964 The Judgment of the Court was delivered by SUBBA RAO, J. This appeal by special leave is preferred against the order of the Madras High Court in a reference made to it by the Income tax Appellate Tribunal under S. 66 1 of the Income tax Act, 1922, hereinafter called the Act.
The reference was heard by a Division Bench of the High Court, companysisting of Rajagopalan and Ramachandra Iyer, JJ.,
