COMMISSIONER OF INCOME TAX Vs. TURNER D M

JUDGEMENT

(1.) IN this reference made by the Tribunal to this court under section 66(1) of the Indian Income -tax Act, 1922, the following question has been referred for our opinion.

(2.) THE question raised really falls within a narrow compass, namely, as to from what date the Madurai shares, which were obtained by the two assessees in specie in a voluntary winding up in respect of their original shareholdings in that company, become of their ownership, whether they become of their ownership on the date of the voluntary liquidation or the date when these shares are actually handed over to the assessees or when they are actually transferred to their names in the register of shares of the company of which the shares in specie are given to them.

(3.) MR . Joshi, appearing or the revenue, has contended before us that though the Harveys company was taken into voluntary liquidation as the members' winding -up by a resolution that was passed on December 19, 1959, the shares of Madurai Mills in specie were actually handed over to the assessees by the liquidator on October 17, 1960, and that the assessees' names were put on the register of Madura Mills Company Ltd. only on October 31, 1960, and that, therefore, either October 17, 1960, or October 31, 1960, should be taken to be the relevant date for the purpose of valuing Madurai shares which were obtained by the assessees. It is not possible to accept this contention of Mr. Joshi for the reasons which we shall presently indicate.