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Citation: 1990 PTD 1010
Court: Madras High Court
Year: 1964
Decision Date: 1964-07-08
Parties: KASTURI & SONS LTD.' vs COMMISSIONER OF INCOME-TAX
Case cited as 1990 PTD 1010
Court Name: Madras High Court Judge(s): Srinivasan, S. Ramachandra Iyer Title: KASTURI & SONS LTD.' vs COMMISSIONER OF INCOME-TAX Case No.: Case No. 48 of 1962 Date of Judgment:1964-07-08 Reported As: 1990 PTD 1010 Result: Questions answered accordingly JUDGMENT JUDGMENT SRINIVASAN, J.---The assessee was previously a registered firm of two partners being the proprietors, publishers and printers of the newspaper `The Hindu'. This business had been assessed under the 1918 Income Tax Act. In 1940, the partnership firm was dissolved and a limited company took its place. The partnership purported to sell to the limited company the entire business as a going concern. The interest in the partnership had been owned in moieties by two brothers. K. Srinivasan and K, Gopalan, who were the kartas of their respective Hindu undivided families. The capital of the limited company of Rs.9 lakhs was divided into 900 shares of Rs.1,000 each and each branch was allotted half the number of shares. In the books of the company, the assets and liabilities were valued at particular figures. One of the items so transferred was the stock of newsprint, the cost price of which was Rs.73,03. But the valuation adopted at the time of the transfer of the business to the limited company was Rs.174,363. For the assessment year 1940-41, the assessee claimed the benefit of the succession relief and asked that the profit of a period of 20 months, that is, the period between the end of the previous year and the…
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