GRACE COLLIS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE are different references. The assessees of equal number who are close relations inter se are concerned for the assessment year 1976-77. The previous year ended on March 31, 1976. The returns for all these years have been filed on May 6, 1977. Although in the application for reference as far as eight questions are sought to be referred by them in their application for reference before the Tribunal and although the Tribunal by the order dated September 29, 1984, referred only seven out of them, learned counsel appearing for the assessees restricted submissions only to three questions, candidly stating that with regard to other four questions it may be taken that no submissions are made in regard thereto and these references should be considered and decided as confined only to three questions. Therefore, for the purpose of consideration, the questions to be considered and answered would be as follows :

(2.) SINCE all these questions are common and identical in all these references, common judgment would be the requirement to avoid duplication. This is the one. The Income-tax Appellate Tribunal also has followed the same course.

(3.) THEREFORE, it is obvious that the assets and liabilities of the amalgamating company were taken over by the amalgamated company in accordance with the change in the proportional equivalence in accordance with Clause 5 as stated above. The assessees, in pursuance thereof, were allotted 14 shares in the amalgamated company for every share of the face value of Rs. 100 each in pursuance of the order of amalgamation. To be precise arithmetically, these assessees acquired 45,318 shares each of the face value of Rs. 100 in the amalgamated company-- Collis Line Pvt. Ltd. There is no dispute that all this took place in 1969 in pursuance of the order of this court referred to above, on and from August 1, 1969. Incidentally, Collis Line Pvt. Ltd. came into existence on November 11, 1968. It would be seen that these shares came to be transferred in favour of one Sri B. K. Chatterji and his group long thereafter on February 29, 1976, for a total consideration of Rs. 48,72,523 and this was at the rate of Rs. 107.50 per share.