RAGHUBAR NARAIN SINGH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS court, by an order dated January 29, 1973, on an application under Section 256(2) of the I.T. Act, 1961 (hereinafter referred to as " the Act "), directed the Income-tax Appellate Tribunal, Patna Bench, Patna, to state a case on the following question of law :

(2.) IN pursuance of that order, the INcome-tax Appellate Tribunal, Patna Bench, Patna, drew up a statement of case and referred it to this court on the question of law mentioned above.

(3.) IT was agreed between the petitioner's family and Shri A. K. Das that all the shares which the family possessed would be transferred to Shri A. K. Das and the petitioner would resign from the office of managing director and the price for the transfer of shares and resignation of the petitioner's office of the managing director was fixed at Rs. 7,60,000. Shri A. K. Das agreed to this and the sum of Rs. 7,60,000 was paid.