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PETITIONER: M/s. RAMNARAIN SONS (Pr.) LTD.
Vs.
RESPONDENT: COMMISSIONER OF INCOME TAX, BOMBAY
DATE OF JUDGMENT: 05/12/1960
BENCH: SHAH, J.C. BENCH: SHAH, J.C. KAPUR, J.L. HIDAYATULLAH, M.
CITATION: 1961 AIR 1141 1961 SCR (2) 904 CITATOR INFO : E 1962 SC1267 (7,10,11) R 1963 SC 835 (21) RF 1968 SC 761 (7) RF 1970 SC 529 (7) E 1973 SC 182 (12) RF 1986 SC1695 (30)
ACT: Income Tax--Assessment--Purchase of shares for acquiring managing agency rights--Loss incurred in sale of such shares--If of a capital nature.
HEADNOTE: The appellants, a private limited company, carrying on business as brokers, managing agents and dealers in shares and securities and having as one of their objects the acquisition of managing agencies, purchased shares of the Dawn Mills at a rate much higher than the market rate for obtaining the controlling voting right and thereby acquired the managing agency of the Mills. Later on, they sold-some of those shares and suffered a loss of Rs. 1,78,438. The Income-tax Officer in assessing the taxable income disallowed the loss and the Appellate 905 Assistant Commissioner on appeal confirmed that order. The Income-tax Appellate Tribunal held that the shares did not become stock-in-trade of the appellants, but since the loss incurred was incidental to their ...