V. Viswanath Iyer, K. Rajinder Chaudhuri and K. R. Chaudhuri, for the respondent.
Against that order, this appeal is preferred with special leave.
T. Desai, A. N. Kirpal, S. P. Nayyar and R. H. Dhebar, for the appellant.
The High Court answered the question in the negative.
Appeal by special leave from the judgment and order dated February 19, 1964 of the Mysore High Court in Income tax.
The Judgment of the Court was delivered by Shah, J. The Bangalore Transport Company Ltd. hereinafter called the Company operated a public motor transport service in the town of Bangalore for several years.
435 of 1966.
4,01,954/ disclosed by the Companys audited accounts as its taxable business income.
The Legislature of the State of Mysore enacted the Bangalore Road Transport Service Act, 1956 Mysore Act VIII of 1956 with a view to provide for the acquisition of the undertaking of the Company.
At the instance of the Company, the following question was submitted by the Appellate Tribunal to the High Court of Mysore under S. 66 1 of the Income tax Act, 1922 Whether the sum of Rs.
This order was companyfirmed by the Appellate Assistant Commissioner in appeal.
The Income tax Appellate Tribunal modified the order of assessment and allowed Rs.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
15 of 1962.
15,50,0001 as companypensation for loss of its undertaking, assets and documents.
The Income tax Officer, Urban Circle, Bangalore, brought to tax Rs.
3,16,439/ as taxable income of the Company in the previous year.
By virtue of S. 3 of the Act the undertaking, assets and documents of the Company vested in the Government of Mysore, on October 1, 1956, and the Company was paid Rs.
Referred Case No.
In respect of the previous year ending March 31, 1957, the Company submitted a return under the Income tax Act, claiming that it had earned numberincome from its business, since its undertaking and business was taken over by the Government of Mysore on October 1, 1956.
97,208/ as development rebate for the previous year and after making certain adjustments brought to tax an amount of Rs.
3,16,439/ were paid towards profits earned by the Company during the period April 1, 1956 to September 30, 1956.
3,16,439/ was income and liable to tax on the assessee for the year 1957 58 ?
