COMMISSIONER OF INCOME-TAX, LUCKNOW vs B. R. SONS (P.) LTD. , . — 1976 PTD 288

Citation: 1976 PTD 288

Court: Allahabad High Court

Year: 1970

Decision Date: 1970-12-09

Parties: COMMISSIONER OF INCOME-TAX, LUCKNOW vs B. R. SONS (P.) LTD. , .

Headnotes

Case cited as 1976 PTD 288

Judgment Text

Court Name: Allahabad High Court Judge(s): H. N. Seth, V. G. Oak Title: COMMISSIONER OF INCOME-TAX, LUCKNOW vs B. R. SONS (P.) LTD. , . Case No.: Income-tax Reference No, 354 of 1964 Date of Judgment:1970-12-09 Reported As: 1976 PTD 288 Result: Question answered in the affirmative JUDGMENT JUDGMENT ' V. G. OAK, C. J.-The short question for consideration in this income-tax reference is, whether two activities of an assessee constitute one business or two businesses. B. R. Sons (P.) Ltd., Kanpur, is the assessee. The assessm ent years are 1950-51, 1951-52 and 1952-53. ' The assessee is a limited company, which was incorporated in 1945. Next year it acquired the Managing Agency of Meyer Mills Ltd. Under the terms of the agreement executed by the assessee for acquiring the Managing Agency, the assessee had to purchase the shares of the managed- company at an agreed price of Rs, 525 per share. For the assessment year 1947-48 the assessee claimed a huge loss of Rs, 21 lakhs and odd due to the revaluing of the shares of the managed- company at Rs, 273-12-0 per share as against the purchase price of Rs, 525 per share. The loss was disallowed by the Income-tax Officer on the ground that it was capital loss. The same view was taken by the Income-tax Officer for the assessment years 1948-49 and 1949-50. When the assessee took up the matter in appeal, the Income-tax Officer conceded before the Appellate Assistant Commissioner that the loss on revaluation of the shares of the Meyer…

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