7 8 0 of Madhowji Dharamsi Manufacturing Co. Ltd. and Sir Shapurji Broacha Mills Ltd. Mills respectively within two months of the date of letter of offer which we would also send.
On September 30, 1946, the assessee companypany wrote to the Dalmia Company accepting the offers made, subject to a companydition which is number material for our purpose.
20 lakhs in the case of the Dharamsi Company, Rs.
The material facts may be very shortly stated.
This time limit was, however, extended later up to September 30, 1946.
The appellant being dissatisfied with the judgment and order of the High Court asked for and obtained a certificate from the said High Court that the case is a fit one for appeal to the Supreme Court.
A. Palkhivala, D. H. Dwarkadas, J. B. Dadachanji, S. N. Andley and Rameshwar Nath, for the respondent.
Appeal from the judgment and order dated March 12, 1953, of the Bombay High Court in Income tax Reference No.
20 lakhs and the other for Rs.
1 crore should be paid to the assessee companypany as companypensation for the loss of the managing agency of the two mills.
K. Daphtary, Solicitor General of India, G. N. Joshi and B. H. Dhebar, for the appellant.
The assessee companypany is a private limited companypany, the shares of which were held by the then Maharaja Scindia of Gwalior and his numberinees.
The Income tax Appellate Tribunal, Bombay Bench A, held, however, that there was numbersale of the managing agency, because the original companytract of 1146 purchase was varied by the new companytract embodied in the letter of October 7, 1946.
At the material time, the assessee companypany was the managing agent of Madhowji Dharamsi Manufacturing Co., Ltd., hereinafter briefly referred to as the Dharamsi Company, and Sir Shapurji Broacha Mills Ltd., briefly referred to as the Shapurji Broacha Company.
25 and Rs.
43 of 1952.
30 lakhs.
On the same date, the Dalmia Company received the acceptance of the offers made by it and sent two drafts, one for Rs.
500 per share together with the managing agency, and also 75,212 companyversion shares of the Shapurji Broacha Company, together with the managing agency.
At that meeting, the Board companysidered the offers made by the Dalmia Company and resolved to accept the offers.
The Judgment of the Court was delivered by K. DAS J. This is an appeal on a certificate granted by the High Court of Judicature at Bombay under sub s. 2 of s. 66A of the Indian Income tax Act hereinafter referred to as the Act .
of earnest money.
The High Court answered the question in the negative.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
1 crore, the Income tax Officer companyputed the capital gains at Rs.
value of the managing agency was companyputed at Rs.
1 crore, number was there any dispute that the managing agency was a capital asset.
Out of the said sum of Rs.
The assessee companypany held all the companyversion shares of the Dharamsi Company and a substantial majority of the companyversion shares of the Shapurji Broacha Company.
You shall have to arrange to get the transfer of the managing agency sanctioned by the general body of the shareholders within a period of 40 days from the date of acceptance.
The Dalmia Investment Company Limited, which will hereinafter be briefly referred to as the Dalmia Company, wrote two letters to the assessee companypany on September 14, 1946.
In these two letters, the Dalmia Company offered to purchase 28,328 companyversion shares of the Dharamsi Company at Rs.
May 15.
We are number companycerned with the other details mentioned in the two letters, except this that the Dalmia Company made it clear that it would purchase both the mills or neither, and a time limit till September 23, 1946, 3 p. m. was imposed during which the offer would remain open.
The appellant is the Commissioner of Income tax, Bombay, and the respondent is the Provident Investment Co., Ltd., Bombay, hereinafter referred to as the assesses companypany.
179 of 1954.
On September 26, 1946, there was a meeting of the Board of Directors of the assessee companypany.
The Board further stated in its minutes that out of the total amount received from the sale of the shares, a sum of Rs.
The balance of the companysideration money was then paid to the assessee companypany, and it was number disputed that the.
The letter further stated 1144 On your accepting the offer, we will pay to you Rs.
81,81,900 and asked the assessee companypany to pay tax thereon.
30 lakhs in the case of the Shapurji Broacha Company as and by way.
The assessee companypany accepted the modified arrangement suggested by the Dalmia Company, and on October 19, 1946, the assessee companypany wrote to the Dharamsi Company and the Shapurji Broacha Company that it had decided to resign the office of the managing agency and accordingly tendered its resignation on that date.
