COMMISSIONER OF INCOME TAX Vs. JAGARNATH PRASAD CHHAWCHHARIA

JUDGEMENT

(1.) THE material facts on record and the proceedings leading up to the present reference are, inter alia, that Jagarnath Prasad Chhawchharia, the assessee, is a Hindu undivided family which carries on business in money-lending as also in milling wheat and paddy.

(2.) ON May 13, 1967, the assessee acquired 24,000 shares of Swadeshi Cotton Mills Co. Ltd., at Rs. 5 per share. No dividend was declared on the said shares thereafter and on December 20, 1969, the assessee sold the said shares at Rs. 6 per share.

(3.) THE Tribunal accordingly allowed the appeal and deleted the addition of the said surplus holding the same to be a receipt which is not taxable.