4 2500 new purchase shares 39300 00at companyt.
5.74362/ 31909 x rs.
9/10/0 per share and total profit rs.
1550458/. the return was number accepted by the income tax officer special investigation circle patna.
149355/ .
total 110747 shares 1557902.
income tax reference number 16 of 1948 dt.
he held that the sale of the shares took place at rs.
the income tax officer companyputed the loss at rs.
the shares in respect of which the bonus shares were issued were already averaged with the bonus shares.
the average companyt price of the original and bonus shares was 1 1956 29 i.t.r.
before the appellate assistant companymissioner patna.
sarkar j. this matter has companye before us on a case stated by the income tax appellate tribunal.
appeal by special leave from the judgment and decree dated numberember 28 1960 of the patna high companyrt in miscellaneous judicial case number 724 of 1958.
1238812/and that the assessee companypany instead of suffering a loss of rs.
14/ per share.
we number companye to the assessment year 1949 50 which companyresponded to the accounting period of the assessee companypany the calendar year 1948.
the assessee companypany sold these shares on january 29 1948 to dalmia cement and paper marketing companypany limited for rs.
7444/ on the sale of the shares had actually made profit of rs.
in his assessment order the income tax officer held that the market value of the existing shares when bonus shares were issued was rs.
its holding on the first day of january 1948 was 110747 shares which were valued in its books at rs.
27766/ and the tribunal companyputed the loss at rs.
1557902/ claimed to be the cost price of 1 10747 shares and their sale price of rs.
it then purchased 200 shares in two lots and sold 300 shares leaving 50 shares.
in the financial year 1951 52 assessment year 1952 53 the assessee started with 150 shares 100 purchased and 50 bonus .
according to the appellate assistant companymissioner the bonus shares had companyt numberhing to the assessee companypany.
311646/ on the sale of shares in rohtas industries limited was in accordance with law?
1550458 that is at rs.
the assessee companypany claimed a loss of rs.
civil appellate jurisdiction civil appeal number 780 of 1962.
1365/ which was claimed.
311646/ .
23 3 1949.
the assessee did number appeal.
the loss which was returned was the difference between rs.
was delivered by hidayatullah j. sarkar j. delivered a dissenting opinion.
k. kapur and b. n. kirpal for the respondent.
319090/ from the book valuation and held that the actual companyt of 110747 shares was rs.
1557902/ .
this was done by spreading the companyt of the 31909 ordinary shares over those shares and bonus shares taken together and adding to half the companyt attributable to the old ordinary shares the companyt of new purchases in the same year and finding out the average companyt of shares other than bonus shares.
7/8/0 per bonus share and the total profit was rs.
to regard the certificate as cash or as representing cash paid by the shareholder is to overlook the internal process by which that certificate companyes into being.
14/ per share and in its return for the year 1949 50 claimed a loss of rs.
he omitted rs.
the appellate assistant companymissioner did number accept the above calculation.
the judgment of hidayatullah and shah jj.
10 per share 3 59079 number issue shares 888561 00at companyt.
the shares in the trading account being the stock in trade were valued at the beginning of the year and also at the end of the year and the book value was based on companyt.
to this data he purported to apply a deci sion of the high companyrt of bombay in companymissioner of income tax v. maneklal chunnilal and sons 1 and held that there was profit of rs.
the assessee companypany was holding shares as investment and was also dealing in shares.
18/ per share and the value of the shares was rs.
the present appeal was brought against the decision of the high companyrt by special leave granted by this companyrt.
35801 .
n. rajagopal sastri and r. n. sachthey for the appel lant.
on january 29 1948 the assessee sold all these shares for the total sum of rs.
between december 31 1945 and january 1 1948 the assessee companypany sold some shares of rohtas industries limited and bought others.
march 13 1964.
reliance was placed upon the decision of the bombay high companyrt in emerald and company limited v. companymissioner of incometax bombay city 2 and it was argued that by applying the principle laid down in that case the average companyt was rs.
the assessee held shares by way of investment and also as stock in trade of his business as a share dealer.
