1996 (2) TMI 93

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....e under section 256(2) of the Income-tax Act, 1961, by which the following questions have been referred to this court for its opinion : " 1. Whether, on the facts and in the circumstances of the case having held that there was a change in the ownership of majority shareholding of the assessee-company, the Tribunal was legally correct in holding that it did not amount to a change in the ownershi....

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....s a public limited company registered under the Indian Companies Act which manufactures articles like metal and metal sheets including lanterns, stoves, metal boxes, cover, etc. Its manufacturing operations were suspended on November 30, 1965, and restarted on September 1, 1971. In the relevant assessment year 1973-74, the assessee claimed set-off of the losses and unabsorbed depreciation, carried....

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....eparate from its shareholder. Change in the shareholders of the company does not change the legal identity of the company. A limited liability company is thus different from a partnership-firm because while a company is distinct from its shareholders and directors, a partnership-firm is not different from its partners and it is not a distinct legal entity. Since the assessee is a limited liability....