MAHARANI USHADEVI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS order shall also govern the disposal of M.C.C. 14 of 1981.

(2.) M.C.C. No. 411 of 1976 is a reference made by the Income-tax Appellate Tribunal referring the following questions of law to this court for its opinion :

(3.) BEFORE the Tribunal, an alternative contention was raised on behalf of the assessee that if controlling power was embedded in the capital asset, it passed on to those to whom the shares were sold and, on that basis also, the purchase price of Rs. 100 per share should have been taken as the cost of acquisition. The Tribunal did not allow the alternative case to be set up and the application for referring that question made by the assessee was also rejected. On an application made in that behalf, this court directed the Tribunal to state the case and refer the aforesaid question No. 1 in M.C.C. No. 14 of 1981 to this court for its opinion.