TMI Blog1993 (4) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... this common judgment. These three references have been made by the Tribunal under section 256(1) of the Income-tax Act, 1961, at the instance of the assessee.The question referred to this court is identical in all the three references and it reads as under : "Whether, on the facts and circumstances of the case, the Appellate Tribunal was right in law in holding that the full value of the cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the company had not only incurred huge losses but had incurred substantial liabilities by way of debts and other outstandings. Therefore, the three brothers entered into an agreement with Shantilal K. Somaiya on April 10 , 1969 . Under that agreement, Shantilal agreed to purchase as many of fully paid equity shares of Testeels Limited of the face value of Rs. 100 each as could be procured at a pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns". They had also claimed that they should be assessed as an association of persons. However, in these references, we are not concerned with the other questions and the only question which we have to consider is whether the assessees can be said to have received consideration of Rs. 50 per share even though they had sold the said shares at the rate of Re. 1 per share. It is a fact that about 7, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le price of the shares included release and discharge of the three brothers from their liabilities and obligations. Clauses 6 to 11 clearly show that the only reason why they had agreed to sell the shares at the rate of Re. 1 per share was to get rid of the liabilities. Thus, the difference of Rs. 49 per share which was claimed as loss was also part of the consideration for release of their liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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