TMI Blog1992 (7) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... e under section 256(2) of the Income-tax Act, 1961, at the instance of the Department, are as follows : Under an order of this court dated February 20, 1979, the scheme of amalgamation of the assessee-company with Messrs. Mather and Platt, U. K., was sanctioned at the instance of the transferee-company with effect from July 1, 1978. Similarly, the Calcutta High Court, by its order dated January ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the U. K. company in the capital base of the company as on July 1, 1978. The Tribunal has, for the purpose of calculation of statutory dues under the Companies (Profits) Surtax Act, 1964, allowed this inclusion. The application by the Department to the Tribunal for raising the following question of law and referring it to us for adjudication has been rejected " Whether, on the facts and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 31, 1969. The correct date of allotment of these shares is May 3, 1979. The relation back of this allotment is not as on January 1, 1969, but it should be as on July 1, 1978. These dates appear to have been wrongly reproduced from the order passed in another case. Moreover, the statement that the allotment took place in the subsequent year is also incorrect. The actual allotment which took place ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... July 1, 1978. In the case of CIT v. Swastik Rubber Products Ltd. [1983] 140 ITR 304, a Division Bench of this court held that the order of the court sanctioning the scheme of amalgamation in that case clearly provided that the entire undertaking and the business and the property of the assessee-company would stand transferred to the transferee-company with effect from the appointed date in the sch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not be treated as income of the transferee-company because, after coming into operation of the scheme of amalgamation, the transferee-company could not receive dividend On its own shares. In the premises, in our view, looking to the appointed date, the value of the shares issued by the assessee-company in favour of the U. K. company must, therefore, form a part of the capital base of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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