Winding-up resolution date fixes share entitlement for capital gains valuation despite later transfer formalities.

A voluntary winding up is deemed to commence when the resolution for winding up is passed, and where the liquidation scheme provides for distribution of assets in specie from that date, the shareholders become entitled to the shares then. Later physical delivery or transfer in the register does not postpone ownership for valuation purposes, because those steps are only administrative. The relevant date for valuing the shares in computing capital gains was therefore the date of the winding-up resolution.

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Issues: Whether the assessees became entitled to the Madurai shares on 19 December 1959, being the date of the resolution for members' voluntary winding up, or only on the later dates when the shares were physically handed over or transferred in their names, for the purpose of valuing the shares in computing capital gains.

Analysis: A voluntary winding up is deemed to commence when the resolution for winding up is passed. The liquidation scheme provided for distribution of the company's assets in specie with effect from 19 December 1959, and the liquidator's subsequent handing over of the shares and later transfer in the register did not postpone the date on which the assessees became entitled to the shares. From that date onwards, the liquidator held the shares for the assessees, and the later administrative steps did not alter the effective date of ownership for valuation purposes.

Conclusion: The assessees became entitled to the Madurai shares on 19 December 1959, and that date was the relevant date for valuing the shares in computing capital gains.

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