1960 (8) TMI 97

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....and January 28, 1947, was allowable under section 10 of the Income-tax Act?" The assessee, the Travancore Sugars and Chemicals Limited, purchased from the Government of Travancore the assets of the Travancore Sugars Limited, of the Government Distillery at Nagercoil and of the Government Tincture Factory at Trivandrum. The agreement dated the 18th June, 1937, annexure "A" to the statement of the case, deals with this purchase. Apart from the cash consideration recited in the agreement, clause 7 thereof provided for a further payment as follows : "The Government shall be entitled to twenty per cent. of the net profits earned by the company in every year subject however to a maximum of rupees forty thousand per annum, such net pro....

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....t of His Highness the Maharaja of Travancore of the one part, and Sir William Wright, Kt., C.G.E., of Messrs. Parry & Co. Ltd., Madras, acting for and on behalf of the said Messrs. Parry & Co. Ltd., of the other part, whereby the said Government should sell and the company should purchase the assets including the lands of the Travancore Sugars Ltd., with the buildings, outhouses, machinery and other things attached thereto and more particularly described in the Schedule 'A' annexed to the said principal agreement, the factory known as the Government Distilleries situate at Nagercoil in South Travancore with lands, buildings, machinery and other things attached thereto and more particularly described in the Schedule 'B' annex....