514o8o2/ .
11675108/ .
the assessee was dissolved and its business was discontinued with effect from february 1 1948.
he was of the view that the assessee had made capital gains amounting to rs.
the appellate tribunal confirmed the order passed by the appellate assistant commissioner.
100/each and rs.
4640279/ on 1 2 1948 it could number be higher than rs.
whether on the facts and in the circumstances of the case the tribunal misdirected itself in law and or acted without evidence or in disregard of the most material evidence on record in making the valuation of the applicants assets on first day of january one thousand nine hundred and thirtynine ?
the appeal filed by the companymissioner may first be considered.
the assessee companytended before the tribunal relying upon the evidence on record that the value of the managing agencies 240 9 7 4 shares of the cement agencies limited and the goodwill on january 1.
appeals from the judgment and order dated october 12 13 1962 of the bombay high companyrt in income tax reference number 2 of 1959.
the appellate assistant commissioner had proceeded to determine the value of its assets as on 1 1 1939.
in so far as the tribunal has failed to do so and has proceeded on the erroneous view which it has taken that it was number necessary to deal in detail with the evidence produced before the income tax authorities the tribunal has clearly misdirected itself and had also number applied its mind properly to the material on record.
which the assessee had received and which it was companymon ground between the parties was rs.
the assessee has appealed against the answers recorded on the first three questions against the order recording the answer on the fourth question the commissioner has appealed.
in appeal the appeal 9 7 3 late assistant companymissioner modified the order.
c. mathur for the appellant in c.a.
assessee freehold and leasehold hereditaments plant and machinery stock in trade and book debts government securities and shares and full benefit of all shipping and general agencies distributorships etc.
ness as on 1 1 1939 for the purpose of the companyputation of the capital gains and the said capital gains if any had to be determined by deducting the said valuation as on 1 1 1939 from the full value of the companysideration.
in companysideration of 9996 shares in the vendee companypany of the face value of rs.
1919 1920 of 1966.
400/ in cash.
8 lakhs its value on february 1 1948 should be higher.
the stand taken by the assessee in our opinion is in consistent.
the appellate assistant companymissioner rejected the claim of the assessee to the benefit of s. 25 3 4 of the income tax act 1922.
2540737/ by sale of shares to the two companypanies and other assets transferred to killick nixon company limited and had suffered a capital loss of rs.
in a proceeding for assessment to tax payable by the assessee for the year 1949 50 the relevant previous year being the year ending june 30 1948 the income tax officer assessed the capital gains made by the assessee on the transfer of its capital assets to the two companypanies it rs.
civil appellate jurisdiction civil appeals number.
the high companyrt answered the first question in the negative and the second the third and the fourth questions in the affirmative.
it is number open to the assessee to value an asset by applying one method on 1 2 1948 and anumberher on 1 1 1939.
narsaraju and r. n. sachthey for the appellant in a. number 1920 of 1966 and the respondent in c.a.
a uniform method must be adopted both as on the date of the transfer and as on 1 1 1939.
5140802/ as on i. i 1939.
as against the said valuation arrived at by the appellate assistant companymissioner the assessee has raised ojections before the tribunal which objections the tribunal had to companysider on their merits.
number 1919 of 1966 and the respondent in ca.
p. malliotra and 0.
3201747/ .
5140802/ and the market value of those assets on february 1 1948 estimated at rs.
400530/ being the difference between the market value of the managing agencies 240 shares of the cement agencies limited and the goodwill on january 1 1939 estimated at rs.
700/ in cash.
the tribunal recorded its companyclusion that for the purpose of this appeal it is enumbergh to say that if the value of the assets in question was rs.
the tribunal then observed that since the assets were transferred to a companypany in which the partners of the assessee were interested and the transfer was made for a consideration which was less than the market value it was number open to the assessee to companytend that the market value of the assets on january 1 1939 should be taken into account that the assessee was number entitled to reduce the capital gain by adopting the valuation of those assets which had a market quotation and in respect of assets which had no market quotation by adopting the sale price and that if the goodwill of the business on january 1 1939 was worth rs.
t. desai 0.
the managing agencies 240 shares of the cement agencies limited and the goodwill of its busi.
by anumberher agreement dated january 29 1948 the assessee agreed to sell to killick nixon company limited goodwill of the business of the.
1939 companysiderably exceeded rs.
the judgment of the companyrt was delivered by shah j. these are cross appeals from the order passed by the high companyrt of bombay recording answers to questions sub mitted in a reference under s. 66 of the indian income tax act 1922.
number 1919 of 1966.
the tribunal drew up a statement of the case and referred two questions numbered i 2 below to the high companyrt of judicature at bombay.
speaking for ourselves we think the income tax authorities by allowing the loss of rs.
messrs killick nixon company hereinafter called the assessee was a firm which carried on diverse trading activities in bombay.
number 1920 of 1966 .
the assessee agreed to sell on numberember 28 1947 to a companypany called killick industries limited the benefit of managing agency companytracts held by it shares of limited company including 240 shares of the cement agencies limited and debentures and book and other debts in companysideration of 79993 shares of the face value of rs.
100/ each or killick industries limited and rs.
