TMI Blog1996 (2) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... vered by M. KATJU J. ---This is an income-tax reference under section 256(2) of the Income-tax Act, 1961, by which the following questions have been referred to this court for its opinion : " 1. Whether, on the facts and in the circumstances of the case having held that there was a change in the ownership of majority shareholding of the assessee-company, the Tribunal was legally correct in hol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. The facts of the case are that the assessee is a public limited company registered under the Indian Companies Act which manufactures articles like metal and metal sheets including lanterns, stoves, metal boxes, cover, etc. Its manufacturing operations were suspended on November 30, 1965, and restarted on September 1, 1971. In the relevant assessment year 1973-74, the assessee claimed set-off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed liability company is a distinct legal entity separate from its shareholder. Change in the shareholders of the company does not change the legal identity of the company. A limited liability company is thus different from a partnership-firm because while a company is distinct from its shareholders and directors, a partnership-firm is not different from its partners and it is not a distinct legal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assets of the assessee were not transferred but there is a continued ownership by the company. The finding of the Tribunal in paragraph 22 of its order is that the conditions mentioned in section 32(2) of the Income-tax Act have been fully satisfied. These are findings of facts and we cannot interfere with them in advisory jurisdiction under section 256. For the above reasons, all the questions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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