1972 (11) TMI 3

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....s are by certificate. They arise from the consolidated judgment of the High Court of judicature at Madras in a reference under section 27(1) of the Wealth-tax Act, 1957 (hereinafter referred to as the Act "). The question of law referred to the High Court was : " Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that the claim of the assessee for the d....

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....business in South India. There was another company known as M/s. G.F. Kellner & Co. (hereinafter referred to as " Kellners ") which had a subscribed capital of Rs. 36 lakhs divided into 1,60,000 7 1/2 cumulative preference shares of Rs. 10 each, and Rs. 2 lakhs equity shares of Rs. 10 each. The main activity of the Kellners was railway catering in Northern India. The respondent-company acquired 1.....

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....eof remains unpaid G.F. Kellner and Company Ltd. shall propose to go into voluntary liquidation any special resolution submitted to shareholders for that purpose by the board of directors shall provide that this company instead of paying to the liquidators the said Rs. 31,26,000 or the unpaid part thereof in cash, shall be entitled to surrender to the liquidators any share of G.F. Kellner and Comp....

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....at Kellners have been assessed to wealth-tax in the relevant accounting periods and in computing its net wealth the debt of Rs. 31,26,000 due to it by the assessee was taken into consideration. It is also not denied that in respect of the assets purchased by the assessee from Kellners the assessee had not paid a part of the consideration, i.e., Rs. 31,26,000. Prima facie that part of the considera....