COMMISSIONER OF INCOME-TAX (CENTRAL), CALCUTTA vs ASSOCIATED — 1971 PTD 643

Citation: 1971 PTD 643

Court: Calcutta High Court

Year: 1970

Decision Date: 1970-12-31

Parties: COMMISSIONER OF INCOME-TAX (CENTRAL), CALCUTTA vs ASSOCIATED JUDGMENT

Headnotes

Case cited as 1971 PTD 643

Judgment Text

Court Name: Calcutta High Court Judge(s): Sabyasachi Mukharji, S. C. Jeb Title:COMMISSIONER OF INCOME-TAX (CENTRAL), CALCUTTA vs ASSOCIATED JUDGMENT Reported As: 1971 PTD 643 Result: answered in the negative Judgment JUDGMENT SABYASACHI MUKHARII, J.----The assessee-company held 42,200 shares of the Chemical Maunfacturing Co. Of India Ltd. The shares had been purchased by the assessee for a total sum of Rs. 3,56,936. By a special resolution passed by the shareholders in an extraordinary general meeting on the 8th September 1951, the said company, namely, the Chemical Manufacturing Co. Of India Ltd., went into voluntary liquidation and a liquidator was appointed for the winding-up of the company. By 11th July 1955, the liquidators had paid to the assessee a sum of Rs. 2,80,400 as dividends. This reference arises out of the assessment for the assessment year 1957-58, the previous year being the period from April 1, 1956, to March 31, 1957. On the 26th September 1956, during the course of the previous year relevant for the present assessment, the assessee received a further sum of Rs. 21,100 from the liquidators as refund of capital at the rate of 50 np. Per share on 42,200 shares mentioned herein before. The question is whether the said sum received by the assessee on the 26th September 1956, is assessable as, capital gains under section 12-B(1) of the Indian Income-tax Act, 1922. Section 12-B(1), as it stood at the material time and leaving aside the provisos which are not…

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