1967 (12) TMI 21 - HC - Income Tax

Assessee held a large number of shares in an incorporated company by name T Ltd. - excess amount realised on the sale of the assets of T Ltd. - taxability u/s of 2(6A)(c) Indian Income Tax Act 1922

Summary

The High Court of Madras ruled that the excess amount realized on the sale of assets of Tinnevelly Farms and Orchards Limited is not assessable as taxable income under section 2(6A)(c) of the Income-tax Act. The court found that there was no liquidation, distribution, or evidence of accumulated profits before the company was struck off the register. The judgment favored the assessee, and no costs were awarded.