COMMISSIONER OF INCOME TAX Vs. BHARAT NIDHI LIMITED

JUDGEMENT

(1.) The question of law referred to this court is as follows :

(2.) The main and really the only point which arises in the reference is whether on the facts found there was a completed sale of the said Shares to Mrs. Jain and Mr. Dalmia as' claimed by the assessee on 5-2-1948. It is not disputed that if there was a completed sale of these shares as held by the Tribunal the reference has to be answered against the Revenue.

(3.) Now according to the revenue there was only an agreement of sale as per agreement dated 5-2-1948 while according to the assessee the shares were sold and the transaction comp- leted by the said document. According to the terms of documents dated 5-2-1948 the shares could be taken delivery of by 31-3-1948. It also provided that if the shares are not taken delivery of by the said date the dividends etc. after that date will be for the benefit of the parties who were liable to pay interest at 6 per cent from 1-4-1948- If the shares were not taken delivery of by the said 2 parties the bank was at liberty to sell them after 31-3-1948. As mentioned above admittedly the shares were not taken delivery of nor money paid for them at that time.