COMMISSIONER OF INCOME-TAX, GUJARAT II vs R. M. AMIN — 1976 PTD 410

Citation: 1976 PTD 410

Court: Gujarat High Court

Year: 1970

Decision Date: 1970-10-15

Parties: COMMISSIONER OF INCOME-TAX, GUJARAT II vs R. M. AMIN

Headnotes

Case cited as 1976 PTD 410

Judgment Text

Court Name: Gujarat High Court Judge(s): P. N. Bhagwati, B. J. Divan Title: COMMISSIONER OF INCOME-TAX, GUJARAT II vs R. M. AMIN Case No.: Income-tax Reference No, 4 of 1967 Date of Judgment:1970-10-15 Reported As: 1976 PTD 410 Result: Order accordingly JUDGMENT JUDGMENT ' P. N. BHAGWATI, C. J.-This reference raises a very interesting question of law relating to the construction of section 45 read with section 2(47) of the Income-tax Act, 1961. The question is whether a certain amount received by the assessee on liquidation of Kowolongojo Cinneries Ltd., Kampala, a private limited company incorporated in Uganda (hereinafter referred to as the Uganda Company), in respect of 192 shares held by him in that Company to the extent to wnich it exceeded the value of those shares on 1st January 1954, represents capital gain within the meaning of section 45, read with section 2(47) of the Act. The assessee held, in the share capital of the Uganda Company, 192 shares of the aggregate face value of shillings 1,92,000, that is, Rs, 1,28,000. The Uganda Company went into valuntary liquidation by a special resolution dated 10th July 1961, and in the liquidation, the assets of the Uganda Company were sold by the liquidator and after payment of debts and liabilities, the final account in respect of liquidation was drawn up by the liquidator on 31st August 1961. The assessee, according to the statement of the case. Became entitled to receive shillings 4,68,489 at the rate of shillings…

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